IRS Warns That Pay On Disability Is Often Taxable: Here's How To Tell

What is taxed and what isn’t can be confusing. In the case of disability pay, whether it is taxed or not usually depends on who paid for the disability insurance coverage. Perhaps your employer paid and you were covered as a fringe benefit. In that case, when you are disabled and the coverage kicks in, the benefits you receive are taxable. However, what if you paid for your disability insurance yourself, with after-tax dollars? In that case, the payments you later receive on disability are tax-free.

Read More: https://www.forbes.com/sites/robertwood/2017/07/05/irs-warns-that-pay-on-disability-is-often-taxable-heres-how-to-tell/#309487a0648f

Questions: http://rehcpas.com/

IRS Rejects Minister Tax Write-Offs For Lack Of Profit Motive

The U.S. Tax Court has agreed with the IRS that a minister and author could not deduct business expenses. Why? He was not engaged in a trade or business for profit. To top it off, the reverend also wasn't allowed any deductions under the more liberal hobby loss rules, because he had no gross income from these activities. The case is Lewis v. Commissioner, involving a minister and author named Willie Lewis. He occasionally performed weddings, attended meetings, and conducted seminars. On his 2011 tax return, he claimed business expenses from these activities. The IRS said no, assessed more taxes, and added penalties. So Mr. Lewis went to Tax Court.

Read More: https://www.forbes.com/sites/robertwood/2017/07/06/irs-rejects-minister-tax-write-offs-for-lack-of-profit-motive/#2deb9b75673d

http://www.rehcpas.com/

When It Comes To Tax Time, Who Is A Dependent?

Today is my son's eighth birthday, and naturally, I spent the morning thinking back to the countless ways he's enriched my life. There was that first dependency exemption in 2009. And then that much-needed dependent care credit in 2011. And who can forget the child tax credit of 2014? Great times, all.

Read More: https://www.forbes.com/sites/anthonynitti/2017/06/02/when-it-comes-to-tax-time-who-is-a-dependent/#3a55d98e716b

http://rehcpas.com/

Worst Taxes? Paying Someone Else's

Paying taxes is rarely satisfying or something you look forward to. Besides, it is almost an article of faith that it is perfectly legal--and just plain smart--to arrange your affairs so you pay as little as possible. But if you think that paying taxes can't get any worse, you would be wrong. The least satisfying of all taxes would be paying taxes that are not even yours. It is as if no one is going to give you any credit, and you are only stuck with someone's else's taxes because you were at the wrong place at the wrong time. That might be how some people view some 'responsible persons' who are stuck paying their employer's taxes. Let's start with the basics.

Read More: https://www.forbes.com/sites/robertwood/2017/06/08/worst-taxes-paying-someone-elses/#5bbef73b4c2e

Questions: http://rehcpas.com/

'Soup Nazi' Tax Evasion Case Holds Lessons For Every Business

Robert N. Bertrand, CFO of the Soupman, Inc. chain made famous with Seinfeld’s Soup Nazi character, has been indicted for tax crimes. The indictment alleges 20 counts of failure to pay Medicare, Social Security, and federal income taxes. Soupman, Inc. is based in Staten Island, and licenses the name and recipes of Al Yeganeh, the “Soup Nazi” character from Seinfeld. No crime has yet been proven, but the charges are quite serious.

Read More: https://www.forbes.com/sites/robertwood/2017/05/24/soup-nazi-tax-evasion-case-holds-lessons-for-every-business/#58cce8ac4596

http://rehcpas.com/

Congress Votes to Change Overtime Laws

Allow Employers to Offer Comp Time Instead

Changes may be coming for the millions of American workers who receive overtime pay. And it may affect their paychecks.

A new bill passed by the U.S. House of Representatives would allow employers to offer hourly employees paid time off instead of overtime pay, when they reach over 40 hours in a workweek. So, for example, a worker who put in 45 hours one week, could be given seven and one-half hours off the next week (1.5 hours comp time for each hour of overtime), and paid for doing for working 40 hours but only having worked 32.5 hours.

Read More: http://www.cpapracticeadvisor.com/news/12331257/congress-votes-to-change-overtime-laws-allow-employers-to-offer-comp-time-instead

Questions: http://rehcpas.com/

President Trump's tax plan: Here's what it includes

President Trump’s top economic advisers laid out an ambitious tax plan Wednesday afternoon that the administration contends will simplify the process for average Americans and “stimulate” business investment.

Chief economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin unveiled the first official details -- printed on a single sheet of paper -- of a plan Cohn called “the most significant tax reform legislation since 1986, and one of the biggest tax cuts in American history.”

Read More: http://www.foxnews.com/politics/2017/04/26/president-trumps-tax-plan-heres-what-it-includes.html

Questions: http://rehcpas.com