Work-job-career Feed

If you've been thinking since the enactment of the Tax Cuts and Jobs Act (TCJA) about devising a way to do your current job as an independent contractor instead of as an employee, think again. The Treasury Department today dashed many such tax-driven work-related dreams. Treasury issued (finally!) proposed regulations on the new Section 199A deduction that it says will prevent employees from improperly reclassifying themselves as independent contractors. Lower tax on self-employment income: That work recharacterization seemed appealing in the immediate aftermath of the new tax law. Amid all that was included in the hastily written TCJA, it was... Read more →


Photo by Chris Potter via ccPixs.com School is about to start, so all the students who contributed to the just-released July jobs report are wrapping up those seasonal gigs. Many of these young workers plan to use the money they earned to pay some of their college costs. Kudos for them for contributing to their educations. But it's also a great idea for young people to start thinking about the day when they can quit working for good. The problem is that too many young people, like a lot of us, don't think that far ahead. Plus, a young person's... Read more →


Your tax responsibilities as a freelancer can be a hassle, but at least they mean you're making money via your self-employment venture. But what about those clients who ignore your invoices? Here are some ways to deal with problematic payers. You've done your research — including checking into all the new entrepreneurial tax tasks you'll have to handle — and decided, yes, freelancing is the way you want to go. Welcome to my world! Overall, I highly recommend the self-employed life that involves a variety of clients. Even when you specialize like I do, you still get an interesting array... Read more →


Freelancing means more flexibility, such as where to work and the option to wear more comfortable attire. It also means you have some new tax responsibilities. (Photo by Lulu Hoeller via Flickr) The gig economy in the United States is growing at a phenomenal rate that shows no signs of slowing down. That's the analysis of BMO Wealth Management. A recent survey commissioned by the international wealth management company found that gigs — defined as jobs of short or uncertain duration — are the new normal. BMO's findings appear to support Upwork's annual Freelancing in America study, which was released... Read more →


An historic interplanetary business trip 49 years ago prompted an astronaut to submit some travel expenses to his NASA bosses. Such claims still happen every day for more Earth-bound business travelers, but a tax break for unreimbursed work-related expenses is gone. Neil Armstrong, the first man to walk on Earth's Moon, photographs the lunar module at Tranquility Base on July 20, 1969. (Photo courtesy the National Aeronautics and Space Administration/NASA) On a hot July afternoon 39 years ago today, my brother and I were ordered to come in from our play in the West Texas sun so that we could... Read more →


One of those hammocks has my name on it, after I finish a few July tax tasks. (Photo by Roberto La Forgia via Flickr CC) School is out. The fireworks have been shot (except for the stashes of my neighborhood's teens, which based on prior post-July 4 experiences, probably will last another week). And the heat is definitely on. That means it's finally, fully summer. And that means that it's time to get down to some serious summertime tax moves. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just... Read more →


Tired of being a wage slave? Thanks to the Tax Cuts and Jobs Act (TCJA), some disgruntled salaried employees are looking into becoming independent contractors. But before you take the leap into a new way of working, you need to take tax and other matters into account. "Congress flipped traditional tax-planning upside down" with the new tax law, noted the Tax Policy Center's Steven M. Rosenthal in a TaxVox post soon after the new tax law took full effect earlier this year. "Many moderate-income workers may be able to exploit a tax break that higher-income workers cannot. And by shifting... Read more →


The hubby and I, like every other person, are getting older every day. That means we're getting closer to claiming Social Security and Medicare benefits. Two recent reports on the status of those federal programs make me glad to be closer to our collection dates. Both Social Security and Medicare, according to the programs' trustees, will run out of money to pay beneficiaries in 16 years and 8 years, respectively. At least the grayer-every-day hubby and I will get some of the full payouts. Sorry about all you youngsters! OK, I'm really not that selfish. But we are a bit... Read more →


Tax law changes mean that some previously deductible miles can no longer be claimed. (Traffic photo by Jo via Flickr) Back in March, the Internal Revenue Service announced revised inflation changes for many tax provisions that were affected by the recently-enacted Tax Cuts and Jobs Act (TCJA). One area that didn't change, however, was the list of 2018 standard mileage amounts used to calculate the driving-related tax breaks associated with medical, business, charity and moving costs. For the 2018 tax year, those cents-per-mile amounts are shown in the table below, along with the 2017 figures for folks who might be... Read more →


Losing your job. It's one of the worst things that can happen, especially when it comes as a total surprise. That's what folks who worked on Roseanne are dealing with after ABC pulled the plug on the rebooted sitcom. Being out of work is not so high-profile for most of us. But we all share the panic, anger and helplessness of suddenly losing the reason we get up every morning. To help you get through being let go, here are six steps you can take. And, of course, there are tax implications (nine total) for each of these post-job moves.... Read more →


Bicyclists' fringe commuting benefits were eliminated under the new tax law. Other commuters also could find their workplace transportation perks slashed, too. Woman on bicycle by Sunny via Flickr CC It's forecast to be, for the third straight day, near 97 degrees this afternoon in the greater Austin area. It's also National Bike to Work Day. That is, shall we say, a pungent combination. Yet another reason I'm glad I work from home! Biking benefits are ending: Despite the hot Texas summers (and springs and falls), the Austin area is bicycle-crazed. Folks two-wheel it all over the place, undeterred by... Read more →


Tax Day is less than a week away. But finishing up your 2017 Form 1040 is not the only tax task facing millions of Americans. Here are 10 tax matters that must be taken care of by April 17. 1. File your 2017 tax year federal tax return. Yeah, I started with the easy (so to speak), obvious one. But it is the reason for the tax season. If you don't get your return into or on the way if snail mailing by Tax Day, the late-filing penalty is 5 percent of the additional taxes owed amount for every month... Read more →


Being your own boss means you are responsible for many tasks, including setting up a retirement plan for yourself and your business' employees. If you're self-employed, your primary focus, especially in your entrepreneurial effort's early years, likely is to just make sure your business survives. But once you're on stable business footing, it's wise to look into tax-deferred retirement plan options for your small business. Not only are these retirement accounts a great way to save for the day you are ready to stop working, they also can help you reduce your current tax bill. Here are three self-employed retirement... Read more →


Kids all across the country, including those in my neighborhood, spent Saturday hunting for brightly colored eggs. Or, if they're in the Washington, D.C. area, perhaps they're getting ready to participate in tomorrow's (Monday, April 2) 140th annual White House Easter Egg Roll, like the youngsters in the photo above did last year. Their parents, however, are more likely this weekend to be hunting for tax breaks as the April 17 filing deadline nears. Every tax season, lots of taxpayers overlook some deductions, credits or other tax moves that can reduce their eventual Internal Revenue Service bill. Here are some... Read more →


The larger standard deduction under the Tax Cuts and Jobs Act (TCJA) that took effect this year has gotten a lot of attention. One of the big pluses, cite fans of the new nearly doubled standard deduction amounts, is that more people will claim them instead of itemizing tax deductible expenses. But regardless of whether you itemize now, plan to under the new tax law or never ever messed with a Schedule A and don't plan to start, there still are some tax deductions you can claim. They are what are popularly known as above-the-line deductions found directly on 1040... Read more →


Photo by 401(k) 2012 via Flickr The Tax Cuts and Jobs Act (TCJA) prompted the Internal Revenue Service this week to reissue some tax-related inflation adjustments. However, one area was not affected by the TCJA's provisions. The amounts you can contribute in 2018 to your tax-favored retirement accounts did not change. There are two reasons for the retirement amounts' status quo. First, despite some Congressional discussions about changing retirement plans early in the tax bill's formulation, those proposals were dropped after much public outcry. (Sometimes our elected leaders do hear us!) Also, while the TCJA did change the tax-related inflation... Read more →


Shortly after the Tax Cuts and Jobs Act (TCJA) was signed into law on Dec. 22, 2017, the Republican lawmakers who wrote and fast-tracked it into law pointed to the measure's immediate effects. The most immediate indicator was the many companies that gave their workers year-end bonuses. Some corporate execs acknowledged that the law, which gives big businesses a dramatic 14 percentage points cut on their tax bills (from a 35 percent to 21 percent rate), played a part in the bonus decision. But as 2018, the first year that the tax cuts will be in effect, other companies are... Read more →


UPDATE, March 24, 2018: The fiscal year 2018 omnibus spending bill signed into law on March 23 contained a compromise that should ensure that restaurant workers aren't stiffed under the new tip pooling regulation. Details follow in the post. If you're going to a restaurant or bar today to watch the Super Bowl instead of to your buddy's for an LII party, tip your servers well. They soon could be losing their gratuities. That's the worst-case scenario feared by wait staff and employee advocacy groups under the Trump Administration's effort to reinstate tip pooling. Return of shared tips: With tip... Read more →


Every tax season, the April filing deadline gets the most attention. But today, Jan. 31, also is a big tax day. It's when most statements with information you need to complete your Form 1040 (or 1040A or 1040EZ) are supposed to be delivered. Technically, the Internal Revenue Service gives these information statements the same leeway it offers filers on Tax Day. Earnings and other tax-related statements due today are considered on time as long as they're on the way, either electronically (if you agree to that delivery method) or via snail mail by Jan. 31. So if you don't have... Read more →


Grandparents who are raising their grandchildren might benefit by claiming the Earned Income Tax Credit (EITC). The IRS has additional information for these taxpayers and other special groups and situations where the EITC could help. Friday, Jan. 26, was EITC Awareness Day, the 12th annual event during with the Internal Revenue Service makes a special effort to get the word out about this tax break that millions of filers ignore each year. Actually, the tax agency made special efforts, plural, yesterday. There were more than 250 total outreach events and activities around the country to promote the Earned Income Tax... Read more →