Article Highlights: • Collecting Tips • Tip Splitting • Service Charges • Record Keeping • Employer Reporting • Allocated Tips Anyone who collects tips must include them in their taxable income. This requirement is not limited to waiters and waitresses; it applies to anyone who collects tips, including taxicab drivers, beauticians, porters, concierges, etc. Tips are … [Read more...] about Receiving Cash Tips? The IRS Is Watching
Time-Share Use as a Charitable Contribution
Article Highlights: • Charity Auction • Time-Share Donation • Use of Property as a Donation • Time-Share Maintenance Fees • Taxpayer-Rendered Services If you have ever attended a charity auction, it is not uncommon to see a week’s use of a time-share included in the items donated for auction. The time-share owners who donate these weeks generally do so in anticipation of … [Read more...] about Time-Share Use as a Charitable Contribution
Deducting More Than $250 for Teachers’ Classroom Supplies
Article Highlights: • Above-the-Line Deduction • Qualifications • Employee Business Expenses • Noncash Charitable Contribution • Noncash Charitable Documentation Requirements Many devoted teachers spend a significant amount of their own money on classroom supplies. Recognizing this, several years ago, Congress created a special deduction for teachers that would allow them to … [Read more...] about Deducting More Than $250 for Teachers’ Classroom Supplies
Back-Door Roth IRAs
Article Highlights: • Roth IRA Contribution Limitations • Converting a Traditional IRA to a Roth IRA • Circumventing the Limitations • Back-Door Roth IRAs • Pitfalls of a Back-Door Roth IRA • The “All IRAs Are One” Rule Many individuals who are saving for retirement favor Roth IRAs over traditional IRAs because the former allows for both accumulation and post-retirement … [Read more...] about Back-Door Roth IRAs
Oops, Did You Forget Something on a Tax Return?
Article Highlights: • Overlooked Deductions and Credits • Amended Tax Documents • Overlooked Income • Filing Statute of Limitations If you have already filed your tax return and overlooked an item of income or forgot to claim a deduction or credit, it is not too late! An amended return can be filed to correct an already filed tax return. Failing to report an item of income … [Read more...] about Oops, Did You Forget Something on a Tax Return?