Better late than never!
Sorry no posts this week. I have been busy with the closing on my condo
in PA and getting things (utilities, cable, phone, internet, etc) set up. I should return to regular posting (other
than BUZZ) next week.
* BNA.COM reports “Congress Leaders Steam Toward Possible Tax Vote Showdowns in August” (highlight is mine) -
“Leaders
of the House and Senate continue to move forward with divergent plans for
addressing the Bush-era temporary tax cuts, with leaders of both chambers
setting up votes that may not come until the beginning of August. In the House,
Republicans will offer bills to extend the 2001 and 2003 tax cuts for all
taxpayers for one year and set up a process for overhauling the tax
code, while in the Senate, Democrats will put forward a package that will
extend the tax cuts for families earning $250,000 or less, consistent with
President Obama's plan.”
While I would prefer the Republican bill
(clearly the way to go at this point) to that of the Democrats, it is unlikely
that either will pass, as neither party has enough votes in both house. Nothing will be accomplished until after the
election.
* An IRS Summertime Tax Tip titled “A Lesson from the IRS for Students Starting a Summer Job” talks about the tax
status of “paper boys” (or girls) -
“Special
rules apply to services you perform as a newspaper carrier or distributor. You
are treated as self-employed for federal tax purposes regardless of your age if
you meet the following conditions:
• You
are in the business of delivering newspapers.
• All
your pay for these services directly relates to sales rather than to the number
of hours worked.
• You
perform the delivery services under a written contract which states that you
will not be treated as an employee for federal tax purposes.
If
you do not meet these conditions and you are under age 18, then you are
generally exempt from Social Security and Medicare tax.”
I do not know any school-age paper boys or
girls who are “in the business of
delivering newspapers”.
My mentor did do returns for adults (I use
the term lightly when referring to these specific taxpayers) who were actually
“in the business of delivering newspapers”
and filed Schedule C. Thankfully none
were left when I was gifted his practice.
* Janet Novack gives us another example of
why you should not overpay Henry and Richard to prepare your tax returns in “Batman Faces Dark Night With IRS If He Takes H&R Block's Tax Advice” at
FORBES.COM. They FU-ed Bruce Wayne’s tax
return!
She quotes an appropriate reaction from a
reader of the Block piece -
“As
one comment on the Block blog put it: ‘Hope they take more care with YOUR taxes
than they did with Batman’s’.”
I expect that Bruce Wayne is smart enough
not to go to H+R for tax preparation.
* Trish McIntire tells us that the Office
of the Chief Counsel has now clarified their position on claiming Medicare
premiums as an adjustment to income for self-employed health insurance in her
post “Medicare B and the Self-Employed” at OUR TAXING TIMES -
“ . .
. the Chief Counsel has ruled that Medicare B is a qualified insurance under
Sec 162(l) and qualifies for the Self-Employed Health Insurance (SEHI)
deduction. Medicare D (the drug plan) has always qualified for the special
deduction.”
* Tax pros – don’t forget my Special Summer Savings.
THE
LAST WORD-
Recently
I quoted from John Adams as interpreted in the musical “1776” concerning the
inaction of the idiots in Congress. I
came across a good direct quote from Adams on the same subject in an AARP
editorial.
In
1776 (the year, not the musical, Adams wrote of his fears that the Continental
Congress’ decisions would be dictated “by noise, not sense; by meanness, not
greatness; by contracted hearts, not large souls”.
No
one can dispute that Adams’ fears have come true with the idiots in Congress
today. Their decisions, or more
appropriately lack of decisions (but then again – not to decide is to decide),
are certainly dictated by noise, meanness, contracted hearts, and idiocy.
TTFN
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