The Tax Professionals Blog
Tax Treatment of Emotional Distress Damages
Posted by Lee Reams Sr. on
A frequent question has to do with the taxation of damages awarded for emotional distress. Damages for physical injury or physical sickness are clearly tax-exempt and damages for emotional distress are generally taxable.Filing When Married to a Non-Resident Alien Spouse
Posted by Lee Reams Sr. on
Generally, a U.S. citizen or a U.S. resident who is married to a nonresident alien must file as Married Separate. However, a person who is a nonresident alien at the end of his taxable year, and who is married to a U.S. citizen or a U.S. resident can be treated as a U.S. resident for income tax purposes if the spouses so elect (Code Sec. 6013(g)(1)). By making the election they can file as MFJ.
Sick Pay - Who Pays the Tax?
Posted by Lee Reams Sr. on
The taxability of sick pay depends upon whether the taxpayer paid the sick pay insurance premiums or the employer funded the sick pay.Resident Apartment Manager Tax Issues
Posted by Lee Reams Sr. on
Landlords will often hire a resident manager to handle the day-to-day tasks of running an apartment building. In some locales, and depending upon the number of units in the apartment complex, resident managers are required. For example, in California, resident managers are required where there are 16 or more units, while the requirement applies for 9 units in NY City.Automotive Manufacturers’ Sales Incentives
Posted by Lee Reams Sr. on
It is common practice for automotive manufacturers to provide incentive payments, including bonuses, prizes, or other awards, to individual sales persons. These can be made directly to the individual or through the dealership that employs the salesperson.