California, Illinois, and New York have all adopted new laws requiring companies that hire freelance workers (independent contractors) to enter into written agreements with them containing certain minimum provisions, including a description of their services and payment provisions. Firms that fail to pay freelancers can be sued in court and ordered to pay twice the amount owed plus attorney fees. Failure to provide a contract alone can result in an award of damages.

Some types of workers that you would ordinarily classify as independent contractors for tax purposes under normal IRS tests must be classified as statutory employees for tax purposes. These include corporate officers, home workers, drivers who distribute certain products, life insurance salespeople, and traveling salespeople.

Missed an estimated tax deadline? Discover how you can use strategic withholding from IRAs and W-2s—even late in the year—to wipe out penalties.

Want to boost your retirement savings with tax-free growth, even if you earn too much for a Roth IRA contribution? Learn how a backdoor Roth conversion can help—but be sure to avoid a costly tax surprise!

If you’re a solo business owner with no employees, the mega backdoor Roth allows you to contribute up to $70,000 ($77,500 if age 50 or older) to a Roth account—far more than the standard backdoor Roth. This strategy lets you maximize tax-free growth and avoid required minimum distributions, making it a powerful tool for long-term wealth building.

Understanding phaseouts helps you create tax planning strategies that are more efficient, as they provide crucial information on the income limits for various tax benefits based on your filing status. With this knowledge, you can make informed decisions on how to allocate your income and investments to minimize your tax liability and maximize your after-tax benefits.

If you’re paying taxes on required minimum distributions (RMDs) from your traditional IRAs and you also donate to your church, school, or other qualified 501(c)(3) charities, the tax code offers a tax-advantaged solution: qualified charitable distributions (QCDs). This approach allows you to direct your IRA funds to charitable organizations while satisfying your RMD requirements and reducing your tax burden.

Here’s the question: How do I avoid the net investment income tax (NIIT) on the sale of a rental property for a $1 million profit? I owned the property for 10 years and was the only person who worked on the property.

The U.S. Treasury will not require U.S. corporations, limited liability companies, or other U.S. business entities to comply with the Corporate Transparency Act (CTA). This means you as a U.S. citizen and your U.S.-formed reporting companies will not have to file beneficial ownership reports with the Department of the Treasury Financial Crimes Enforcement Network (FinCEN). Foreign companies are still subject to the filing requirement.