What is NII and Will it Cause NIIT?

For tax years after December 31, 2012, individuals, trusts, and estates are subject to a 3.8 percent Net Investment Income Tax (NIIT), if their modified adjusted gross income (MAGI) exceeds a threshold amount determined by their filing status: married filing joint, married filing separately, or single.  Some of you may have experienced this new tax…

WHAT DOES YOUR W-2 SAY ABOUT YOU?

The Form W-2, Wage and Tax Statement, is a form millions of Americans receive annually.  The form is required to be prepared by every employer engaged in a trade or business who pays remuneration for services performed by an employee. The form is prepared with five copies to be distributed as follows: Social Security Administration…

The End of 2013 is Just Round the Corner

Hopefully there will not be a repeat of the 16-day government shutdown following the 12 days of Christmas.  The IRS has already announced to tax preparers that they likely will not be accepting tax returns prior to January 28, but maybe not until February 4 – more specific dates will be announced in December. Each…

What’s New at the IRS?

The Internal Revenue Service has been in the news lately, and not for the normal reasons.  The IRS has been called out for using its power in the wrong ways to monitor non-profit organizations, making poor choices on spending money to train employees, and for other questionable practices. Beyond this internal strife, there is news…