Potpourri of Tax Topics

/Potpourri of Tax Topics

The Conundrum of Small Non-Profits and the Small Accounting Professional

By | January 14th, 2020|Categories: Potpourri of Tax Topics|

One of the topics that comes up often when talking to clients and other accountants is, the accounting service problem that small non-profits are facing. They need help from tax and accounting professionals. They can't (or don't want to...) pay full price. So they seek out affordable accounting pros. Most of the time these accounting pros [...]

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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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