The latest updates on PPP forgiveness are not good news.Yes, this money that you received, can be forgiven or it becomes a short-term loan at a great interest rate. However, there is this new ruling that states (IRS Revenue ruling 20-27): “In newly released formal guidance, the IRS has confirmed that taxpayers with a reasonable…
Great Information about the 2019 IRA contributions from the Motley Fool
If you check out our Facebook page Facebook.com/cgjohnsonaccounting/ we just posted an article that is a great wealth of information from the Motley Fool. This article discusses the 2019 contribution limits as well as the phase-out limits for contributions. It’s written so that is understandable for everyone. It further discusses how contributions to an IRA,…
2019 Tax year starts in February.
So many changes in tax code have created a huge discussion as far as how do I know what I don’t know. How does me not knowing, affect me and my taxes for the 2019 tax year and forward? The tax laws are becoming more demanding of our money. So many of the tax changes…
Section 105 Medical Expenses
December 2019 Section 105 Medical Expense Deduction Plan for Statutory Employee Questions and answers. This may sound a bit daunting, but the information here is very important so you don’t leave money on the table for the IRS to tax. Questions from a statutory employee: One thing I’m not sure about is Section 105 medical…
W2 and Independent Contractor issues starting in 2020
December 2019 Dynamex Causing Incorrect W-2 Classifications for Independent Contractors Questions I have a client who works as a traveling salesman for a well-known manufacturer of athletic shoes and apparel. He was paid as an independent contractor through 2017. Beginning in 2018, he was paid through the company’s payroll and issued a W-2 form. My…
Divorce and Taxes
Dear Client: As with all financial transactions, divorce comes with tax consequences. And those consequences have changed for tax years 2018 and later thanks to the Tax Cuts and Jobs Act (TCJA). General Rule The general tax rule in a divorce is that you can divide up most assets, including cash, between you and your…
A great article to share with you… What the IRS doesn’t tell you about self-employment
I’m not interested in re-inventing the wheel. When the experts write, it is always important to share the wealth of information with you. This is really an important conversation to have. It reinforces the conversations I have with my clients who are considering becoming self-employed. What the IRS doesn’t tell you about self-employment taxes By…
Are you really running a business or will the IRS make the determination that you are a hobby?
Do you sell Avon, Nerium, Amway, etc? Are you running a business or have you set yourself up to be a hobby? This was an article written in 2018 I came across. I was asked to repost it. HomeBuilding Your Avon Business9 Ways to Make Sure Your Avon Business Is Not Just a Hobby Let’s…
TAXES AND BANKRUPTCY – The Rules For Dischargeable Debt In Bankruptcy.
Can taxes be discharged in bankruptcy is a question I get frequently. I have had to have this discussion with a few clients lately because they are in a terrible financial place. We talked about the possibility to discharge some of their tax debt and their other debts in bankruptcy. So I did some research….
New IRS Notice Makes More Spouses Eligible for Innocent Spouse Tax Relief
What is innocent spouse tax relief, and how do you get it? If your spouse made mistakes or flat-out lied on a joint income tax return and you signed it, the IRS holds both of you jointly responsible for any unpaid taxes.1 Simply saying you didn’t understand or you didn’t ask when you signed the…