Tag Archives: Medicare

Taxing Your Tips

As a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]

Four W’s to Know at Tax Time

Wage Base The wage base changes every year, and is the income level at which the full tax rate of 15.30% will apply to withhold Social Security and Medicare taxes. In 2015, the 15.30% rate (a combination paid by employers and employees) is applicable to the first $118,500 of income or self-employment earnings. After that, […]

When You Owe the Additional Medicare Tax

There are certain taxpayers who, depending on their income, may owe an Additional Medicare Tax. If this applies to you, it’s important to be aware of certain facts to make tax time simpler. The Additional Medicare Tax rate is 9%. The tax is assessed when your income exceeds a specified threshold. Medicare wages, self-employment income, […]

When you work in the food service industry, especially as a waitress/waiter, busboy, hostess, or sommelier, you may rely on tips as part of your income. This additional income can get confusing at tax time, as you may not know what you are required to report to the IRS. Whether you receive tips or not, […]

Student? Get a Tax Education

Just because you are a fulltime student doesn’t mean you are automatically exempt from filing a tax return or reporting your income. If you didn’t have enough withheld during the year, you may owe a surprising amount of taxes. If you don’t have to file a return, you still should, as you may be entitled […]

Once you’ve put your day job behind you, and settled into the sweet life of retirement, it doesn’t mean tax time has come to an end. Likely, you’ll receive a Form SSA 1099, Social Security Benefit Statement (or RRB – 1099 if you are in Railroad Retirement). If you have additional income, your benefits may […]

Driving For Deductions

Do you drive a vehicle, like a school bus, semi-trailer, truck, or taxi for work? Drivers will receive Form W-2, Wage and Tax Statement, for income from wages you obtain being an employee. In the event that you received a Form W-2 and the ‘Statutory employee‘ check box in Box 13 is marked, report that […]

The Three Different Businesses

Business income is income that is received from the sale of products and services. Business income can include fees paid to a person for their services provided through their regular business, as well as rents received from real estate. Businesses must report all income received as property or services at the cost of the fair […]

As an employee, you likely receive wages, salaries or tips from your employer for your services. If so, you must include these amounts as part of your gross income when filing your taxes. Any withholdings are to be included in your income for the year they were withheld. Withholdings include Social Security, Medicare, and income […]

This year, income tax time can become quite a headache if you’re not familiar with the health insurance requirements. The Affordable Care Act, also called Obamacare, affects just about every American at tax time. This is due to a mandate that requires every taxpayer to have health insurance, along with a subsidy to help lower […]