Tax Tips You Can Bank On.
I was reading the paper today and was reminded of one of my favorite ‘philosophers’ Will Rogers, who once said, “Mixing politics and religion is like mixing manure and ice cream. It doesn’t do much to the manure, but it sure does ruin the ice cream.”
NOW, ON A LIGHTER NOTE…
A while back, I told you about a section of the new healthcare bill, I mean the “Access to Affordable Health Care for All Americans Act” – or something like that) which required employers to begin reporting ON OUR W-2 FORMS, the value of
employer provided healthcare insurance.
Well-meaning people with access to both cyberspace and steroids went crazy with that one … all because the government (stupidly) chose the W-2 Form as the
method of “informing taxpayers” how much our employers paid for our health insurance.
Time out: Did we even ASK for that data?
Do we even CARE? I’m guessing No & No.
Okay, since it was to be reported on W-2s, a self-appointed cyberspace Early Alert
Team declared Code Red, and began blasting everyone in sight for “allowing
an important tax-deductible employee benefit to be declared taxable income.”
Okay, let’s sort out the truth from an urban legend in the making …
FIRST-
Months ago, the IRS suspended the reporting rule for 2011 W-2s (ones that
will be filed in early 2012). So no-sweat if you’ll be filing or receiving W-2s next
January. It will not apply to anybody until January 2013.
SECOND-
In addition to that one year delay in the reporting requirement, for small and home-
based businesses – those filing fewer than 250 W-2s – need not report the health benefit value on W-2s until 2014 (for 2013 income).
HERE’S HOW I LOOK AT IT –
Even though this tax-related “decision” was made by the IRS and Congress, since it isn’t scheduled to take effect until 2014 – I don’t really think of it as a “decision,” but more as a “tentative plan.” Our country changes tax laws more often than I change underwear – sometimes every week.
So will we actually be reporting the value of employer provided health care on W-2s in 2014? Ask me again in late 2013.
CAN WE FIT A SECOND BODY IN THAT COFFIN?
Now that we have buried that notion, let’s also bury the idea that small and home-
based businesses now have to provide 1099 forms to every business establishment where we spend $600 or more in a year.
YES that WAS actually a provision in the bill but Congress and the Obama Administration have agreed that it was a dumb idea, and they have officially killed it.
That’s it for this issue. Save a Bundle – and please pledge 10% of what you save, for making the world a better place.
Creating Tax-Smart Home-Business Owners,
Ron Ronald R. Mueller, MBA, Ph.D. – author of
“Home Business Tax Savings, Made Easy!”
available at www.HomeBusinessTaxSavings.com
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