- Days left
When is a tax accountant also a relationship counselor? When your boyfriend 1099's you. Howard Shih is involved in tax court proceedings over the questionable use of the term "wages" to refer to payments he made to his girlfriend in 2005. Jue-ya Yang moved into his house at some point during the year, and though she had no skills or experience pertaining to his work (as an artist and calligrapher), Howard noted on checks he gave her for spending money "salary" or "wages."

That should have been her first clue. Later, he reported the money he'd paid her, $10,500 in all, on a 1099-MISC form. Eventually Yang was asked to pay taxes on that $10,500 (and another $40,000 of unreported income that she didn't dispute, did she have other boyfriends for whom she did work, I wonder?), and complained to the tax commissioner that the money from Shih was, in fact, a gift.

Tax court ruled in her favor, though she still owes taxes on the $40,000 not in dispute. There is no evidence of why the two broke up; I'm thinking irreconcilable tax brackets may have been a factor.

Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

Economics 101

Intro to economics. But fun.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

What are 1095 Tax Forms for Health Care?

In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum