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With the coronavirus pandemic creating travel restrictions, plenty of people have been stranded from home. In addition to the career and family implications of being stuck away from home, there are potentially large tax complications as well. For those stuck in the United States, you could be considered a tax resident and have certain filing requirements you don’t even realize.

You could be a tax resident if you pass the substantial presence test

On this episode of the Taxgirl podcast, Kelly is joined by Diane Nobile, a partner at the Miami office of Saul Ewing Arnstein & Lehr. Diane has more than 25 years of experience as an international tax and commercial real estate attorney, giving her the perfect insight on the legal ramifications for accidental tax residents, who might qualify for exemptions, and what both taxpayers and tax practitioners need to know heading into this tax season.

Listen to Kelly and Diane talk about accidental tax residents:

  • How people got stuck in a location
  • What the IRS had to say
  • Revenue procedure 2020-20
  • How the IRS defines someone as a tax resident
  • Substantial presence test
  • Potential penalties for failure to report
  • What tax practitioners need to know
  • FBAR reference guide
  • Tax treaty tiebreaker rules
  • What should taxpayers ask their tax practitioner?

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Saul Ewing Arnstein & Lehr – Website

Diane Nobile – LinkedIn

Diane Nobile – Email

While the coronavirus pandemic only further grew the industry, many families already used nannies to help take care of their children and elderly relatives. Whether it’s the potential savings, uncertainty about returning to a shared environment, or a multitude of other reasons, in-home care provides parents and caretakers a ton of benefits. However, it also comes with hurdles as well, with how to figure and pay the so-called nanny taxes being a chief concern.

Nanny taxes don’t have to be complicated

On this episode of the Taxgirl podcast, Kelly is joined by Jay Schulze, the president of HomeWork Solutions, a company that provides household employers an easy way of handling the nanny tax burdens that arise. Kelly and Jay talk about the risks and rewards of becoming a household employer as well as reasons why not having your nanny on the books could come back to haunt you.

Listen to Kelly and Jay talk about nanny taxes:

  • How COVID-19 impacted childcare
  • Nanny shares
  • The distinction between employee and independent contractor
  • Having multiple nannies over a year
  • Do you need worker’s compensation insurance
  • Price of nanny tax services
  • The risks when becoming a household employer
  • The amount of unpaid taxes among household employers
  • Nanny tax breaks
  • Household employer tax breaks
  • FICA taxes
  • What you should look for from a nanny tax service
  • How to handle household employees that don’t want to pay taxes
  • Nannygate
  • Senior care
  • How to handle bonuses to household employees
  • Finding a payroll service for nanny taxes

More about Kelly Phillips Erb:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keeps others from getting into them.

Kelly’s Website – Taxgirl

Homework Solutions – Website

More Americans are considering moving abroad; a trend that equated to a record number of Americans giving up their citizenship in the first half of 2020. While movies might paint it as a whimsical trip, there are significant challenges and potential pitfalls involved. 

There are serious tax challenges to moving abroad

On this episode of the Taxgirl podcast, Kelly is joined by Virginia La Torre Jeker. Virginia has over 35 years of US tax and international experience, including spending 15 years in Hong Kong and Dubai. Kelly and Virginia talk about the difficulties, including the tax requirements and cultural hurdles facing expatriates.

Listen to Kelly and Virginia talk about moving abroad:

  • The drop in people renouncing their citizenship
  • Expatriate
  • FATCA and its impact on moving abroad
  • The perception of expatriation for tax benefits
  • The impact of COVID-19 on expatriates
  • Why people want to move abroad
  • How the U.S. tax system makes things harder for green-card holders
  • The perception of expatriates being rich
  • Form 8938 and foreign investments
  • The potential difficulties people studying abroad have
  • What things people moving abroad should keep in mind
  • How to find a tax preparer when abroad
  • The cultural hurdles
  • The benefits of traveling and moving abroad

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Virginia La Torre Jeker – Website

Virginia La Torre Jeker – Twitter

During the pandemic, those at the top continued to make money while those at the bottom struggled. That’s especially true among minority households with the average white family having as much as eight times the wealth of people of color. That economic inequality hasn’t gone unnoticed, however, with many Americans agreeing it’s gone too far. But with legislation pending, help could be on the way.

The coronavirus pandemic is only growing economic inequality

Rebecca Thompson of Prosperity Now joins Kelly on this episode of the Taxgirl podcast to discuss how to shrink that disparity. From tax credits to encouraging both minority business and homeownership, Rebecca outlines things that can make an impact right now and how pending legislation could go even further.

Listen to Kelly and Rebecca talk about economic inequality:

  • What economic inequality means
  • How economic inequality is split down racial lines
  • What led to that inequality?
  • How tax credits can boost homeownership
  • What the American Opportunity Accounts Act would do
  • The Child Tax Credit
  • Getting advances on the Child Tax Credit
  • Earned Income Tax Credit
  • The VITA program
  • How the stimulus bill could improve economic inequality

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

George Salis – LinkedIn

Prosperity Now – Website

Prosperity Now Advocacy Center – Website

With states needing to fill budget holes, politicians are looking for new sources of revenue. Maryland recently became the first in the United States to pass a digital advertising tax, taxing the revenue made from digital advertisements on online services like Facebook and Google. Other states are watching closely, with a few introducing similar tax bills.

Is Maryland’s digital advertising tax a workable solution?

To find out more about Maryland’s digital advertising tax and the potential ramifications, Kelly is joined by George Salis on this episode of the Taxgirl podcast. George is a principal economist and tax policy advisor for Vertex.

Listen to Kelly and George talk about digital advertising tax:

  • Maryland’s digital advertising tax
  • Digital taxes
  • What is a digital advertising tax?
  • What is being taxed?
  • The complexity of tracking that taxable revenue 
  • How the digital advertisement tax could create disagreements between states
  • The potential negative economic impact of the digital advertising tax
  • Wayfair’s sales tax case and how it relates to Maryland’s new advertising tax

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

George Salis – LinkedIn

Vertex – Website

Chances are, you’re about to come into some money soon — whether it’s your tax refund or the 2021 stimulus check. But what do you do with it now that you have it? For many people, getting a lump sum of money is new to them and they don’t want to blow the opportunity. That’s where this sound advice comes in handy.

How to use and save your stimulus check effectively

On this episode of the Taxgirl podcast, Kelly is joined by Tania Brown, a certified financial planner, author at Saver Life, and the founder of Financially Thriving Mom, to talk about how to save and spend your stimulus check or tax refund. Whether you have outstanding bills that need to be taken care of or you just want to save the money, Tania and Kelly share some important tips to help you be financially sound.

Listen to Kelly and Tania talk about using your 2021 stimulus checks:

  • How can people prioritize saving their stimulus checks?
  • How the 2021 stimulus check can help people
  • Which bills should be prioritized?
  • Hardship programs
  • How to start saving
  • Prioritizing yourself over family and friends that need help
  • Creating boundaries for friends and family
  • Where to find good financial guidance locally
  • Treating yourself as a part of savings

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Tania’s author page – Saver Life

Tania’s website – Financially Thriving Mom

Inclusivity has always been a hot-button topic but it has been pushed to the forefront recently through social justice concerns. To further the discussion of minorities in business, Kelly invites Wil Reynolds to talk about his own experiences with bias and minority representation in business. 

Minorities in business have to overcome biases to find the same level of success and create change

Wil Reynolds is the founder of Seer Interactive. Starting the company after failing to find the type of opportunities he wanted elsewhere, Wil has been a pioneer in search marketing and an inspiration for many. He’s on the show today to talk about his own experiences with bias, minority representation in business, and what he believes is the best path forward.

Listen to Kelly and Wil talk about minorities in business:

  • How Wil decided to start his own business
  • The transition from going solo to hiring employees and having an office
  • The difference between looking for a job and looking for a client
  • Did race and age have an impact on finding clients?
  • How Wil got his big break in business
  • Overcoming someone’s bias as minorities in business
  • Does Wil consider himself to be a success story?
  • Finding and modeling good work/life balance
  • Being a role model to younger generations of minorities in business
  • Diversity hiring initiatives
  • Creating a professional and familial legacy

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Was I overlooked for jobs because I am black? – Article

Wil Reynolds – Twitter

Seer Interactive – Website

The IRS estimates that around 85% of taxes are paid voluntarily and on time. But the tax gap, the difference between the taxes paid on time and those still owed, means hundreds of billions of dollars are missing every year. While politicians often look to increase or decrease taxes as a part of their platform, simply shrinking this gap by collecting the taxes due could solve problems and is fair to everyone.

There’s an estimated $574 billion tax gap per year

Charles Rossotti, the former IRS Commissioner, joins Kelly on this episode of the Taxgirl podcast to discuss how the tax gap can be shrunk. Charles goes over some of ways the IRS can be modernized to not only collect all the taxes due but ensure a smoother process for preparers and filers.

Listen to Kelly and Charles talk about the tax gap:

  • Charles’ article on how the government should target the tax gap instead of raising taxes
  • Where does the gap come from?
  • How the IRS can get those taxes
  • Why doesn’t Congress enact changes to close the tax gap?
  • The cost to close the tax gap
  • The importance of information reporting
  • Debunking the myth that someone’s taxes are too complex to audit
  • Reconciliation forms
  • How big the tax gap is compared to the average taxpayers

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Charles’ Bloomberg article

Shrink the Tax Gap Website

The cannabis industry has been growing rapidly over the last few years as more states begin to make it either medically or recreationally legal. However, with its legal status changes and subsequent boom, cannabis taxes are the next major impact point for the cannabis industry. With stricter guidelines and tax code 280E, marijuana taxes are far from simple and they present potential pitfalls to the professionals both owning and working with cannabis businesses.

How legalization has impacted cannabis taxes

Katye Maxson-Landis joins Kelly on this episode of the Taxgirl podcast to talk about marijuana taxes and how they relate to both companies and preparers. Katye is the owner of Moxy Accounting and has been focusing on advancing accounting best practices within the cannabis industry. She shares her insight as a CPA and her experience with the cannabis industry with Kelly to help both businesses and tax preparers be compliant.

Listen to Kelly and Katye talk about cannabis taxes:

  • The biggest myth of the marijuana industry
  • What is Tax Code section 280E?
  • What cannabis tax deductions businesses can have
  • Why cannabis companies are conservative in their taxes
  • Investment in the cannabis industry
  • Risk assessment in filing cannabis taxes
  • How accountants are dealing with the previously illegal cannabis companies
  • What should professionals know about getting taking on cannabis businesses as clients?
  • The pitfalls of working with the cannabis industry
  • Why professionals shouldn’t work with cannabis businesses out of state
  • The banking challenges in the cannabis industry and other professionals working with them
  • How is the IRS handling cannabis taxes as it becomes legal?
  • Will marijuana become federally legal?

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Moxy Accounting – Website

Moxy Accounting – Twitter

The Moxy Cohort – Website

Katye Maxson-Landis – Email

The coronavirus pandemic has impacted everyone in different ways. While it has been difficult over the last year, filing your taxes could prove to be yet another hurdle in this pandemic. For those that have been telecommuting, there are likely going to be working from home tax complications.

Potential working from home tax problems

On this episode of the Taxgirl podcast, Kelly is joined by Timothy Speiss, the co-leader of EisnerAmper’s personal wealth advisors group. Kelly and Timothy break down some of the biggest potential problems people will face when filing their taxes this year. Whether you hunkered down out of state or simply live in a different state than where you work, working from home could further complicate things like your tax withholding amounts and which state you file with.

Listen to Kelly and Timothy talk about working from home taxes:

  • What tax concerns should employees and employers think about?
  • Tax apportionment factors
  • How changing where you live during the year impacts state taxes
  • What qualifies as residency for taxes?
  • Should you notify your employer when you change where you live?
  • What you should do if your employer didn’t change your residence
  • Working from home tax preparation advice
  • Check your pay stub for the correct withholding amounts
  • Correcting your employer not filing in the right state with tax credits
  • What can states use to prove your residency?

More about Kelly Phillips Erb:

Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Kelly’s Website – Taxgirl

Timothy Speiss – EisnerAmper

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