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Paul Klinkman
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Joined: 09 Apr 2011
Location: United States
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| Posted: 09 Apr 2011 at 17:07 | IP Logged
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Mark started an independent trucking business in 2/10. Mark hired a Spanish-speaking trucking buddy under the table, who had no SSN, and no visa, to help Mark drive and load the truck.
Mark earned 120k minus schedule C deductions of 50k. He would have had to declare $70k income because he didn't send out any 1099-Misc forms, except I'm sorry to say that Mark and his friend both died in a wreck on January 15, 2011. His widow Nancy got the job of filing.
My ethical issue is that widow Nancy will have to pay about $5000 in social security taxes on Mark's 'official' earned income, which she and her two young children will get back five times over in the next 10 years or so because their family's breadwinner died.
I realize that the IRS is aggressive at pinning earned income on people who don't send out 1099s. Is Social Security going to figure this out, and then be aggressive at forcing Nancy to pay less social security taxes so that their branch of government can save money? Is there any legal issue for Nancy?
A couple of random people have suggested filing MFS. However, Nancy is a homemaker and had zero income. For this reason an MFS wouldn't change Nancy's standard vs. itemized deduction status. Is there any other advantage to MFS vs. MFJ?
If Nancy owes $9000 cash to the IRS and has no income except survivors benefits, is there any way to bargain the IRS down?
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DarkLender
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Joined: 13 Apr 2011
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| Posted: 13 Apr 2011 at 13:04 | IP Logged
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Yes of course there are a lot of ways to do it. Better to consult FHA about it.
__________________
Commercial Mortgage Refinancing
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Jasminen
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Joined: 06 May 2011
Location: United States
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| Posted: 06 May 2011 at 07:02 | IP Logged
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A brand new law makes it harder for Social Security and other federal benefits to be garnished, except in certain situations. Banks cannot garnish any benefit payments like Social Security or disability unless there are two months of benefit payments, which is not incredibly likely to occur. The two month build up requirement, though, only applies to banks and not other entities. I read this here:New rule makes Social Security benefits off-limits for garnishing
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allanarlen
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Joined: 20 Jun 2012
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| Posted: 21 Jun 2012 at 17:33 | IP Logged
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For in a very long time now the payments given by the social security programs were free of tax. This was the setup since for the most part of the grantees life the grantees were paying for their social security record. In this case modify has always been an element of our life. like for programs in Social Security it's changed over the years and are still subject to modify.
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Topic: Social Security Tax Issue
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