Well, it is almost time to file your W2s with the government again (you should have already have gotten the employees their copies). Just remember that if you own an S-Corporation you have to jump through extra hoops to be able to deduct your shareholder health insurance (every shareholder owning more than 2% of the S-Corp and their families insurance either paid through a corporate group plan or an individual plan reimbursed by the corporation.) This rule was devised by the IRS in 2008 and only applies to S-Corporations. The shareholders named above have to have their insurance included on their W2s as salary that is only taxable for federal and state income taxes (not subject to FICA, Medicare and any state disability or most local taxes), so box 1 and 16 of the 2014 W2s have to be increased by the insurance, and usually can be disclosed as ’2% SH Ins” in box 14 (but not required). Then the additional salary will be reduced by a “Self Employed Health Insurance” deduction in the adjustments section on page 1 of the form 1040. This effectively allows the S-Corporation to deduct the insurance without any tax consequences to the shareholder. This is the ONLY [...]
Tax Musings of a Burbank CPA: IRS Can Help if W-2s Are Missing
If you are missing one or more W2s and are waiting for them to file, there are some things you can do. See this tip from the IRS about W2 http://content.govdelivery.com/accounts/USIRS/bulletins/ef4d01?reqfrom=share Just remember that if you have your paystubs (or your last stub with year to date information) you can file a form 4852 – Substitute for W2 if you need to. At least then you have documentation to support your tax return (especially if an employer went out of business before the end of the year and didn’t file W2s). Check with your preparer and he can file the substitute form with your return. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Musings of a Burbank CPA: What You Should Know if You Get Tipped at Work
If you work at a job where tips are common (waiter or waitress, bellhop, stripper (?)) you need to be aware of the rules of declaring tips as income and paying tax on them. See this IRS tip about tips (haha): http://content.govdelivery.com/accounts/USIRS/bulletins/eef2a5?reqfrom=share If you want to do this the right way, it is best to keep a log of the tips you receive and then report them to your employer. That way you are following all the rules and will not get in trouble with the IRS. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa