Facts
and Figures
Timely points of
particular interest
Test of Faith—In a new case, a couple claimed charitable deductions for tuition and fees they paid for their children to attend a private school affiliated with a specific religion. But the Ninth Circuit Court said that the parents received a benefit from the education provided to the children. Therefore, they cannot deduct any school expenses as a contribution to charity.
Medicare Premiums—The
cost of Medicare Part B premiums increases for some retirees in 2009. The
basic Part B premium remains at $96.40, but upper-income individuals must
pay a higher amount based on their adjusted gross income (AGI) for 2007.
For example, a single filer with an AGI of $200,000 must pay $250.50
monthly. There is good news; this is the final year of a three-year phase-in of
increases.
Payroll Tax Reversal—Frequently, the IRS claims that workers have been
misclassified as independent contractors rather than employees. However, in a new case, the IRS argued that an industrial pipe fitting expert owed
self-employment tax. But the Tax Court noted that the expert supervised
workers, did not own any of the equipment and did not have a roster of other
clients. Result: He was classified as an employee.
Wherewithal
is provided by Somerset for our clients and other interested persons
upon request. Since technical information is presented in generalized
fashion, no final conclusion on these topics should be made without
further review. For additional information on the issues, please
contact
a member of the firm. Somerset provides total financial solutions,
including accounting, assurance, information solutions, litigation &
valuation, tax, wealth management and management consulting services to
entrepreneurs and their businesses. This document is not intended or
written to be used, and cannot be used, for the purpose of avoiding tax
penalties that may be imposed on the taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
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