Jason Dinesen

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So far Jason Dinesen has created 874 blog entries.

Contributions to a Roth Account Do Not Reduce Taxes in the Current Year

By | December 11th, 2019|Categories: Potpourri of Tax Topics|

I try to be "proactive" with my clients, and I think most reputable accountants and tax preparers do too (despite what "experts" might say). One of the sticking points I have found, especially when dealing with average folks, is Roth accounts. Here's an example: Taxpayer makes enough money to be able to max out their contributions [...]

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Self-Employment Tax Calculation When Income is Over the Social Security Wage Base

By | December 4th, 2019|Categories: Potpourri of Tax Topics|

How does the calculation for self-employment tax work when self-employment income is over the Social Security Wage Base? Let's take a look. Basic Calculation When self-employment income is below the Social Security Wage Base, the calculation is straightforward. Let's say your self-employment income is $50,000, well below the Social Security Wage Base. You take $50,000 x [...]

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The Iowa Form 130

By | November 20th, 2019|Categories: Potpourri of Tax Topics|

Iowa Form 130 is used by Iowa residents who pay tax on income to both Iowa and another state. Here are some examples of how it works. Form 130 Example Let's say Alex lives in Council Bluffs, Iowa, but he works across the river in Omaha, Nebraska. Alex will pay tax to Nebraska because he works [...]

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Do I Lose the Tax Deduction if I Don’t Issue a 1099?

By | November 6th, 2019|Categories: Potpourri of Tax Topics|

Question: if I don't issue a contractor a 1099-MISC for their work, will I lose the ability to take a tax deduction for that payment on my business tax return? Answer: NO!!! But sometimes IRS auditors will try to take this position. Discussion There are two separate issues here. One is the ability to take a [...]

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S-Corporation Loans from Shareholders, Or “My Dentist Told Me”

By | October 23rd, 2019|Categories: Potpourri of Tax Topics|

Last fall I was meeting with a prospective client who was starting a small business. The business had just $10,000 of income in 2018, and would maybe have $30,000 of income in 2019. She was thinking about making her business an S-corporation because her dentist had told her about "these great tax strategies where you put [...]

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