Posted by John_NorCal on 12/17/08 11:43am
Msg #272098

Taxes

Just came back from a 2 day Fed & State tax update seminar. The IRS is looking very heavily at business expenses, such as mileage. Hopefully you won't be "invited" to participate in their nationwide audit survey. Some auditors have been known to ask for a copy of a mileage log and repair receipts in order to verify mileage. If you keep your records in a Blackberry, forget about it, they want hard copy receipts.
With all of the financial mess that we are in, they are looking for ways to find money. A bright spot though is if you're over age 50, the catch up funding provision is increasing by $1,000!

Now go have yourself a Merry Christmas!

John E. Gonzalez, EA

Reply by Calnotary on 12/17/08 1:00pm
Msg #272103

Speaking about taxes John, as a notary signing agent do I have the option to exempt my notary fees from SE tax? In other words: Let's say I do not want to include the 5K in fees I received as a notary in the SE calculation because it affects the EIC, can I do that?

Reply by Susan Fischer on 12/17/08 1:24pm
Msg #272106

What is the 'catch up funding provision?' Thanks, John. n/m

Reply by Linda_H/FL on 12/17/08 2:04pm
Msg #272122

I was curious too....from the IRS website

"For tax years beginning after 2001, a plan may permit participants who are age 50 or over at the end of the calendar year to make additional elective deferral contributions. These additional contributions (commonly referred to as catch-up contributions) are not subject to the general limits that apply to 401(k) plans. An employer is not required to provide for catch-up contributions in any of its plans. However, if a plan does allow catch-up contributions, it must allow all eligible participants to make the same election with respect to catch-up contributions."

www.irs.gov/retirement/sponsor/article/0,,id=151925,00.html

Reply by Susan Fischer on 12/17/08 2:38pm
Msg #272138

Thanks, Linda. So, basically, retirement savings? Well,

that leaves me out.