Top Ten Tips for 1040s
Here are ten tips to avoid errors when filing your 1040 returns. Math and typing errors- Using tax software or a tax firm to prepare your return greatly reduces the chances of mathematical errors, but it is still easy to transpose digits while doing data entry. Even if you have someone prepare your return, check…
Can we classify our musicians as a contractor?
Most churches often struggle with “employee classification” usually with their musicians, nursery workers, secretaries, custodians, etc. Generally, the IRS looks at three areas: Behavioral Control, Financial Control, and Type of Relationship. In most cases, church musicians do not pass the test of being an independent contractor because of the control that the employer exercises over…
When does the I-9 need to be completed?
All new employees must complete Section 1 of Form I-9 on or before their first day of employment. Then, within three business days of their start date, they should submit acceptable proof of their identity and eligibility to work in the United States. As the church, you should complete Section 2 within those same three…
Five Quick Facts about Gift Tax
Gift tax is paid by the giver, not the recipient. If Uncle Bill decides to give you $20,000, you do not need to pay any tax on it. It would be Bill’s responsibility to report that gift to the Federal Government and to pay the taxes. In 2019, the annual exclusion limit is $15,000. This…
Outside Employment Policy – Employee Handbook
Employees may engage in outside employment during non-working hours, provided doing so does not interfere with their job performance or constitute a conflict of interest. Prior to accepting outside employment, employees should notify their manager in writing. The notice must include the name of the Company, the title and nature of the position, the number…
Employee Expense Reimbursements
The compliance and financial risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Would your books survive an IRS spot-check? Do you know which reimbursements for employee expenses should be treated as expenses … and which as compensation?…
3 Tips for Paying Estimated Taxes
Tip # 1: Make your payment on time. The US has a pay-as-you-go tax system, meaning the IRS expects you to make smaller payments of your tax liability through-out the year rather than waiting until the end of the year. If you don’t make quarterly payments and just decide to pay in a lump sum,…
Hobbies versus Businesses
Many of us engage in arts or crafts, but when do you have to start reporting your work as a business to IRS rather than a hobby? The key feature that sets a business apart from a hobby is that a business is done in order to make a profit. The IRS will generally treat…
Home Equity Loans and Second Mortgage Loans Must be Used for Housing Expenses to Qualify for the Housing Allowance
If you managed to pay off your home mortgage this year, congratulations! However, you may notice that you have a lot fewer expenses to claim for your housing allowance at the end of the year. With less housing expenses, you also have less income exempt from income tax, and your tax bill may go up…
Tips to help taxpayers recognize tax scams
New versions of well-known tax-related scams appear every year…and 2019 is no different. No matter what time of year, taxpayers should be on the lookout for scams. Here are some things taxpayers should remember to help them spot scams and avoid becoming a victim. Phone scams The IRS does not leave pre-recorded, urgent or threatening…
