Many people today are accepting jobs with companies who have elected to pay them as independent contractors rather than as typical payroll employees. Companies do this for a variety of reasons, not the least of which are the tax savings they benefit from by not paying social security and Medicare taxes for their “employees.” Individuals ...
If you and one or more other persons jointly own a property that you rent out, and you have not formed a partnership, limited liability company (LLC), or corporation, generally each of you would report your proportional share of the rent income and rent expenses on your individual income tax returns. As indicated by the ...
When you lose your job and find yourself unemployed, income taxes may not be the most important thing on your mind. But during this difficult time, it is important to be aware of the different income tax aspects of your present situation, and the tax consequences of different courses of action you can take, in ...
One of the tax benefits available to businesses is the section 179 deduction that allows you to write off the cost of certain property in the year you purchase it instead of recovering the cost through depreciation deductions. But if you later decide to close your business you may have to recapture a portion of ...
This article will discuss the formation of a partnership. Included are descriptions of the different partnership types, including the partnership features, roles of partners, and partnership taxation. In addition, the partnership agreement will be discussed. There are three types of partnership that will be discussed. These are a general partnership, limited partnership (LP), and limited ...
When you work an internship, you may do it for the experience, without pay. Or you might be paid as an employee or an independent contractor. If you work as an employee you will have federal income tax (and state income tax if applicable), social security and Medicare taxes withheld from your pay. You will ...
How the members of a limited liability company (LLC) are compensated for their services and how they are taxed depends on whether it is a single-member or multi-member LLC, how the LLC elects to be treated for tax purposes, and on what the members of the LLC agree. As pointed out by the IRS, LLCs ...
There is no minimum age for filing a federal income tax return. If you are under age 18 you may have to file a tax return, depending on your income for the year. Or it may be to your advantage to file a return to obtain a refund for the tax withheld from your paycheck. ...
The most reliable source for information on legitimate tax deductions is the agency responsible for collecting taxes from the populace: the Internal Revenue Service [www.irs.gov]. The home page directs you to publications answering questions, allows you to order forms and even e-file your return if you meet certain requirements. It may take time to search ...
An independent contractor is considered a self employed individual, and income earned by an independent contractor is considered self-employment income. “Self-employment income is income that arises from the performance of personal services, but which cannot be classified as wages because an employer-employee relationship does not exist between the payer and the payee” (Self-Employment Tax). Self-Employment ...
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