Taxpayer asks: A not for profit hosted a competition in which my 11 yr old daughter won $500. In order to write her the check, They have asked to have her complete a W-9. I thought that since: 1. The value is below $6002. She is a child that will not be filing a return…
K is for Kiddie Tax. It’s no secret that Congress is concerned about tax fraud. With loopholes and exceptions galore (all, ahem, actually created by Congress), Congress believes that taxpayers are trying to evade taxes left and right. And who among these thieving schemers are the worst offenders? Kids. In 1986, Congress was so concerned…
The arrival of catalogs at my house have done quite a bit to up my daughter’s work ethic. She has it in her head to buy an American Girl doll, complete with accessories, and if you know anything about the brand, you know it’s not cheap. With that, she’s been offering to do all kinds…
Taxpayer asks: Thanks taxgirl for helping me out on this one! I have a couple of different ad and affiliate accounts for my blog. When I earn money, they bank it until I hit a certain dollar amount and then they make a deposit into my PayPal account. A few of them accumulated earnings in…
Taxpayer asks: My daughter worked as a bagger (bagged groceries) last year at our base commissary. The baggers do not receive a salary and work strictly for tips. I already checked with the “Head Bagger” at the commissary who said no type of 1099 will be sent. How do I go about claiming the monies…
Taxpayer asks: I deliver newspapers. Wondering if the Christmas money I receive is taxable. Also, why are lotto winnings taxable? How are you working for that money? Taxgirl says: I believe that the money that you receive at Christmas is taxable. It is not really a *gift* (read more about gifts and bonuses here). It’s…
Many proponents of the flat tax have advocated for the elimination of tax on dividends and interest, leaving only a tax on wages and “earned income.” The argument for the elimination of such a tax is that it would encourage investments and savings and thus, stimulate the economy. The argument against the proposition is that…