By Guest G. at Judy's Book July 11, 2014
We have worked with Murphy & Assoc for approximately 18 years for both our business and personal need and would gladly refer any one to them. I enjoy the friendly atmosphere of the office. If I need anything in a hurry I can count on them c... ...read more
By Vivek S December 19, 2012
I met Keshav Agrawal at his office in North Aurora, IL for 2011 taxes, My taxes included of stock options (RSU) grant and income from rental property and filing for two states. He was very patient, took time to understand my situations, asked questions which made sense. Best thing I liked about him was that he did not rush to prepare the return. Instead he took personal interest and time to complete the tax return. Highly recommended. ...read more
By Scuba at Yellowbook March 07, 2012
If you are looking for a group that will guide you in how to navigate the tax world then keep looking. If you are looking for the equivalent of Quickbooks with an office then this is the place to go. Zero assistance to the customer and if you ask questions then you will get a run down on how you should have known the answer. I am not a tax guy. That is why I went here and literally could have done better with Quickbooks. Lesson learned. ...read more
Question: My child has joined AmeriCorps and has received an income statement. Are these payments taxable? Answer: Yes. AmeriCorps Education Awards and living allowances are taxable in the year they are paid. If you receive an award, you should receive a Form 1099-MISC, Miscellaneous Income. The 1099-MISC will show your award dollar amount in box-3 Other Income, with no withholding. Report these amounts on line 21 for Other Income on the Form 1040. Want more information about filing requirements and tax credits? Call us at (630) 448-2066 or visithttp://www.smalltax.com, orhttp://www.premcpa.comorhttp://www.premtbs.com for more information. DISCLAIMER :Personnel at Prem Tax&Accounting contribute and edit content that they think is of interest to the community. Nothing herein constitutes tax or legal advice. If you believe that any content violates your rights, contactinfo@smalltax.com. ...read more
By Prem Tax & Accounting September 19, 2013
1099-MISC, Independent Contractors, and Self-Employed If payment for services you provided is listed in box 7 of Form 1099-MISC, you are being treated as a self-employed worker, also referred to as an independent contractor:* You do not necessarily have to “have a business,” but simply perform services as a non-employee to have your compensation treated this way.* The payer has determined that an employer-employee relationship does not exist in your case.* That determination is complex, but is essentially made by examining the right to control how, when, and where you perform those services.* It is not based on how you are paid, how often you are paid, or whether you work part-time or full-time. There are three basic areas that are relevant to determine employment status:* Behavioral control,* Financial control, and* Relationship of the parties For more information on employer-employee relationships, refer to Chapter 2 of Publication 15, (Circular E), Employer’s Tax Guide and Chapter 2 of Publication 15-A , Employer’s Supplemental Tax Guide. Unless you were an employee, you report your non-employee compensation on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), or Schedule C-EZ (Form 1040), Net Profit from Business: * You also need to complete Schedule SE (Form 1040), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment, if you had net earnings from self-employment of $400 or more.* This is the manner by which self-employed persons pay into the Social Security and Medicare trust funds. Employees pay into the Social Security and Medicare trust funds, as well as income tax withholding, through deductions from their paychecks.* Generally, there is no tax withholding on self-employment income.* You may be subject to the requirement to make quarterly estimated tax payments.* If you did not make estimated tax payments, you may be charged a penalty for underpayment of estimated tax. If you think that you were, or are an employee and you would like the IRS to issue a determination, you should submit Form SS-8,Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. If the SS-8 Unit determines you to be an employee, you should report the income reported on the Form 1099-MISC with all of your other income, including income earned as an employee on line 7 of your Form 1040. Use Form 8919,Uncollected Social Security and Medicare Tax on Wages, to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. Filling out Form 8919 will allow your social security and Medicare taxes to be credited to your social security account. For an explanation of the difference between an independent contractor and an employee, see Pub.1779,Independent Contractor or Employee. Want more information about filing requirements and tax credits? Call us at (630) 448-2066 or visithttp://www.smalltax.com, orhttp://www.premcpa.comorhttp://www.premtbs.com for more information. DISCLAIMER :Personnel at Prem Tax&Accounting contribute and edit content that they think is of interest to the community. Nothing herein constitutes tax or legal advice. If you believe that any content violates your rights, contactinfo@smalltax.com. ...read more
By Prem Tax & Accounting September 19, 2013
Question: My son is a newspaper carrier. I would like to know if this income is subject to social security and Medicare taxes, and if I must file a Schedule C for him. Answer: Your son may be liable to pay into the Social Security and Medicare system by paying self-employment tax: Special rules apply to services a person performs as a newspaper carrier or distributor. A person is a direct seller and treated as self-employed for federal tax purposes if he or she meets the following conditions: * The person is in the business of delivering/distributing newspapers or shopping news, including directly related services such as soliciting customers and collecting receipts. * Substantially all of the pay for these services directly relates to sales or other output rather than to the number of hours worked. * The person performs the delivery services under a written contract between the person and the service recipient that states that the person will not be treated as an employee for federal tax purposes. Carriers or distributors (not including those who deliver or distribute to any point for subsequent delivery or distribution) and vendors (working under a buy-sell arrangement) who do not meet all of the above requirements and are under the age of 18 are generally not subject to self-employment tax. You must determine which set of rules apply to your son. * Schedule SE (Form 1040), Self Employment Tax, must be filed if net earnings from self-employment are $400 or more. * Self-employed persons report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), or the person may qualify to use Schedule C-EZ (Form 1040), Net Profit from Business. If your son is considered self-employed, he can deduct the employer̢۪s equivalent of self-employment tax. and possibly a portion of certain qualifying health insurance premiums. Want more information about filing requirements and tax credits? Call us at (630) 448-2066 or visithttp://www.smalltax.com, orhttp://www.premcpa.comorhttp://www.premtbs.com for more information. DISCLAIMER :Personnel at Prem Tax&Accounting; contribute and edit content that they think is of interest to the community. Nothing herein constitutes tax or legal advice. If you believe that any content violates your rights, contactinfo@smalltax.com. ...read more
By Prem Tax & Accounting September 19, 2013
Many people give money to family members as a gift in their time of need or if they come into a substantial amount of money. Giving money to a family member can sometimes be taxed; however, there are ways to avoid this this and give money to family members free of tax. ...read more
Many people have opted to learn to file their taxes themselves. This is a great way to save money, and it puts people in control of their own tax return. The process can be confusing, but there are enough resources to learn the correct method. ...read more
