More parents may owe “nanny tax” this year, due to COVID-19

In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who are not independent contractors. If you employ […]

Businesses: Get ready for the new (old?) Form 1099-NEC

What’s old is new again. The IRS has introduced for tax year 2020 Form 1099-NEC for business taxpayers to report nonemployee compensation of $600 or more. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 in a calendar year for services performed in a trade or […]

IRS Tax Tip: Gather records early for a smoother tax season

As taxpayers are getting ready to file their taxes, one of the first things they’ll do is gather their records. To avoid refund delays, taxpayers should gather all year-end income documents before filing a 2019 tax return. It’s important for folks to have all the needed documents on hand before starting to prepare their return. […]