Independent contractors and others who receive income from sources other than an employer can expect to receive a 1099 instead of a W-2. So, what is a 1099, and how do you use it to file your taxes? Here's everything you need to know about Form 1099, inc
If the employee is 55 years old or older, they can contribute $1,000 more to their HSA. Any amount that exceeds the contribution limit must be included in the individual’s gross income; if it is not, it must be reported as “other income” on the individual’s tax return. There is...
What is an MSA and what does it do? At its most basic, an MSA is a contract between two or more parties that establishes what terms and conditions will govern all current and future activities and responsibilities. MSAs are useful because they allow the parties to plan for the future while...
Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions Unemployment income reported on a 1099-G Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freela...
Health Reimbursement Arrangement (HRA) Voluntary Employees’ Beneficiary Association Plan (VEBA) CURRENT ARTICLE Medical Savings Account (MSA) Archer MSA How The Accounts Differ All About Flex Spending Accounts All About Health Savings Accounts Tax Considerations...
No federal income tax is owed on contributions to Archer MSAs and HSAs, account earnings, and distributions used for qualified medical expenses.2 Understanding the Archer MSA Congress created the Archer MSA specifically for self-employed individuals and for employees of small businesses with fewer tha...
Any amount over the carryover limit is forfeited to your business. Are there reporting requirements? Employees do not need to report FSA contributions or distributions on their tax returns. This differs from an HSA or Archer MSA, which requires the employee to report the contributions on Form ...
Your employer can also make contributions on your behalf, and you won’t pay taxes on this money, because it’s not treated as income. You can qualify for an Archer MSA if you or your spouse are self-employed, or if either of you is employed by a company that meets the IRS ...
The working capital ratio, also known as the current ratio, is a financial metric that compares a company’s current assets to its current liabilities. It measures the company’s liquidity and ability to meet short-term obligations. In simpler terms, it indicates how well a company can cover...
Form 1099-SA reports distributions from Health Savings Accounts (HSA) and Medical Savings Accounts (MSA), detailing whether withdrawals are taxable or qualified medical expenses. Understanding how to report these distributions correctly ensures accurate