[…] The IRS does not let you file these forms via their website. Don’t ask me why. The IRS offers a list of approved 3rd party providers that do allow you to e-File, but there’s a cost. The cheapest ($10) option for the corporate extension […]
2025 update: While not directly related to sending 1099-NEC forms to your contractors, credit cards and electronic payment processors such as PayPal and Venmo are now issuing Forms 1099-K when total payments received by you electronically exceed $5,000, lowered from the old $20,000 threshold. 2024 update: We recommend eFiling for everyone, however starting in 2024 …
Sending 1099-NEC (formerly 1099-MISC) to contractors and vendors Read More »
[…] This is your last chance. If you’re planning to sign up for a job search service, take some job-related classes or buy a computer for your W2 job – do it now. You can also pre-pay union and professional dues, investment-related services and subscriptions, and investment advice. “Job” means […]
[…] Pre-pay 2017 property taxes on your personal residence. This is not an absolute rule, but it should be a wise move for most people, not just investors. Because of the new law, you may lose the tax benefit of property taxes on your homestead. So make sure the bill is paid in 2017 […]
[…] I’m not too alarmed. First, this change (IF implemented) will only affect companies that are designated as “a trade or business.” This term has been often used in the current tax law – but never defined! It led to numerous lawsuits against the IRS, with inconsistent results. Basically, it’s grey area […]
[…] It gets more unsettling when we insert couple kids in the picture. Personal exemptions of $4k per person are rolled into the standard deduction under the Trump plan. It means no taxable income reduction for kids, in stark contrast with the current system which affords a $8k write-off for 2 kids […]
[…] In most cases – nothing, as the IRS will automatically identify affected taxpayers by zip code. If you’re qualified, but the IRS did not recognize you as such, you will need to contact the IRS in response to a proposed penalty notice […]
If you think the home office tax deduction is confusing – you are right. Worse, the IRS has reversed its own position from yes to no and back to yes several times – like the infamous Florida recounts. Let’s briefly review the rules as they are today. 1. You need to have a legitimate business that …
Except for you, of course. But THEY sure cheat the IRS, we know it for a fact. How do we know? Well, they brag non-stop about paying zero taxes. How is this possible, unless they cheat? Maybe they do, and maybe they don’t. Interestingly, there is a third option: maybe, they do not mean to cheat …
And who would know if not the almighty IRS? So, let us visit www.IRS.gov and download the official Publication 535 conveniently titled Business Expenses. There, on page 3, we receive the much-appreciated legal guidance: To be deductible, a business expense must be both ordinary and necessary. If this is not clear enough, the ever-helpful IRS goes an extra mile to …
