U.S. Olympians who medal in Paris will also bring home cash, specifically, $37,500 for gold, $22,500 for silver, and $15,000 for bronze. And here’s an extra patriotic bonus—in 2016, Washington passed a law that says Olympians and Paralympians don’t have to pay tax on any of those winnings!
Archives for July 2024
Hi Bob!
Did you know that the late Bob Newhart was an accountant before he launched his career in comedy?
Newhart was born in Chicago in 1929. He graduated from Loyola University with a degree in business management before getting drafted and serving here in the States as a clerk during the Korean War. From there, he went to United States Gypsum to work as an accountant. And if he had succeeded, we might never have heard of him! Sadly, his motto, “That‘s close enough,” didn’t work for his employers. Nor did his habit of balancing petty cash out of his own pocket.
Let’s take a look at that motto of his: “That’s close enough.” Was it really so disqualifying?
What I Did on Summer Vacation
Over the last month, we’ve discussed several videos circulating on social media purporting to help you save money on taxes. Today, we’re going to see how one would-be influencer mishandles the basic concept of “substance over form.”
Summer is here, and that means vacation travel. Unfortunately, vacations are pricey. Wouldn’t it be great if you could get a deduction for those beach nirvana expenses? Never fear, Anna from Instagram is here to show you the way: “Here’s how you’re actually gonna be able to write off travel with any of your family members!”
Could It Happen Here?
The Fourth of July holiday reminds many of us that these United States were forged with the flame of tax protest. On December 16, 1773, the Sons of Liberty—a group of Boston patriots disguised as Native Americans— redefined the term “tea party” to mean “throwing chests of tea into the Boston Harbor rather than pay the hated Townshend Act duties.”
Between a Rock and a Hard Place
The IRS conducts worker classification audits on a regular basis. The problem with worker misclassification is significant and erring on the wrong side can result in back taxes, penalties, and interest on unpaid taxes for the business owner. Additionally, because IRS and States share information with each other, a successful misclassification case will result in the other agency looking to the employer for their share of the employment tax pie.
More Social Media Secrets Revealed
Last week, we looked at the Venn diagram with unlikely circles representing “social media influencers” and “sound tax advice.” If you missed it, you’ll be shocked, shocked to discover very little overlap.
But just in case you thought it was safe to open TikTok again, here’s another example of a too-good-to-be-true social media tax claim that turns out to be, well, too good to be true.