Introduction Claiming a dependent on your tax return can provide significant tax savings, including tax credits and deductions. However, the IRS has specific rules and qualifications that determine who...
Introduction Form 8919, Uncollected Social Security and Medicare Tax on Wages, is used by workers who were misclassified as independent contractors instead of employees. Filing Form 8919 ensures that...
Introduction Depreciation is a critical tax deduction for businesses, allowing them to recover the cost of assets over time. The Internal Revenue Code (IRC) §167 and §168 define depreciation...
Introduction Many employers offer adoption assistance benefits to help employees cover the costs of adopting a child. These benefits may include financial reimbursements, direct payments, or legal fee coverage....
Introduction Dependent care benefits help working parents and caregivers pay for childcare and dependent care services. Many employers offer Flexible Spending Accounts (FSAs) or direct reimbursements for dependent care...
Introduction Medicaid waiver payments are made to caregivers providing home and community-based services (HCBS) for individuals with disabilities or medical conditions. However, the tax treatment of these payments depends...
Introduction Tips are taxable income and must be reported to the IRS. Many employees in service industries (e.g., restaurant workers, bartenders, and hotel staff) receive cash tips, credit card...
Introduction If you hire a nanny, housekeeper, caregiver, or gardener, you may be responsible for household employment taxes. These taxes ensure compliance with Social Security, Medicare, and unemployment tax...
Introduction Employers are required by the IRS to issue Form W-2 (Wage and Tax Statement) to employees by January 31 each year. However, some employees may not receive their...
Introduction Small businesses must follow IRS tax regulations to avoid costly mistakes that can lead to penalties, audits, and overpaying taxes. Common tax errors include misreporting income, missing deductions,...