Here is a new one – the Supreme Court ruled that the severance a large company paid to its employees after closing its doors and laying everyone off were paid wages subject to FICA and Medicare tax. Duh! See the details in this article by Greg Stohr of Bloomberg and carried by AccountingToday: http://www.accountingtoday.com/news/supreme-court-rules-severance-pay-can-be-taxed-70142-1.html?utm_campaign=daily-mar%2026%202014&utm_medium=email&utm_source=newsletter Now, I don’t really know why this was ever considered anything else, especially considering how the money was paid to the employees, but I guess there was some question (????) Anyway this will keep a lot of other big companies in the same situations from trying to get back refunds of social security (claiming the severance was a form of unemployment compensation.) They would have to structure the payout differently to even have a chance after this ruling. 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: Tax Rules for Children with Investment Income
So do your children have to file a tax return if they are your dependents and have investment income? The answer can be yes more often than you think. Worse yet, they might be paying tax on it at your income tax rate! See this IRS tip that explains things a little more and what is required: http://content.govdelivery.com/accounts/USIRS/bulletins/abb0ae?reqfrom=share Now, wasn’t it a great idea back then to gift all this stuff to your kids and have them pay the tax on this stuff at their rates? Well if you went a little overboard, maybe not! They might still be paying at your rates, plus you might have to file another tax return to boot. 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
Burbank CPA Musings: Forget the Lottery – IRS Tries to Distribute $760 Million in Unclaimed Tax Refunds
Anyone who buys a lottery ticket but hasn’t filed a 2010 tax return should kick themselves twice – if you are due a refund from the IRS you only have until April 15 to file that return and get your winnings (I mean refund.) Michael Cohn in AccountingToday will give you all the details: http://www.accountingtoday.com/news/IRS-Looks-Distribute-Unclaimed-Tax-Refunds-70036-1.html?utm_campaign=daily-mar%2020%202014&utm_medium=email&utm_source=newsletter Now topping the list of refunds by state is (surprise, surprise) Texas, California and New York – those three states account for 25% of the total refunds. So you have a little less than a month to get the returns filed and get your money – now get to it! 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