Free Tax Tips

July 7 Biz Minute

Question: Who do I issue 1099 Misc to?

Hi, I apologize if this question was taken up at some time. I am new in the 1099 Misc issuance field. Just need your advise if 1099 Misc are required for: Blue Cross insurance payments, AFLAC insurance payments, property and liability insurance payments (including broker payments), payments for life insurance, payments to payroll services provider, payments to waste collector, payments to locksmith, payments for car repairs, mortgage payments, and payments to utility companies (DWP) and Phone (landline and cellphone) companies.

Again, I apologize. I have read through the IRS instructions but am still confuse. I would not like to make a mistake.

Thanks.

Answer: You really are confused.

You do not issue one to ANY of those people.

1099 is for independ contractors who you hire to work for you, not companies that you pay for services with.

Question: What is the best Healthcare Insurance for small business owners in Colorado?

I’m starting a new job in Jan and I will be 1099 – I need any suggestions from anyone currently paying their ownHealth Insurance and what is a good company to go with. Many Thanks!

Answer: I am not paying my own Health Insurance but I did a search for you.

Check out these links for your research:

http://dir.yahoo.com/Business_and_Economy/Business_to_Business/Financial_Services/Insurance/Health/

http://www.affordable-health-insurance.com/location_colorado.php?source=yahoo

http://www.medhealthinsurance.com/colorado.htm

http://www.anthemforco.com/index.php?dname=yah.anthemforco.com&roiid=28252&cid=83303&c=1&oid=5

http://website101.com/Health_Insurance/

Hope this info helps you.

God Bless….

#1099 2011 Ford Escape 4WD XLT 3.0L V6 Flex Fuel

Question: My Schedule K-1 (Form 1065) is for an Oil Drilling Partnership in the Gulf of Mexico.?

I have $3,364 in Box 1 Ordinary business income (loss). A note that came with the K-1 states the following:
State Information-The partnership’s ordinary business income (loss) reported in Box 1 is derived from offshore federal leases located in the Gulf of Mexico, thus, the oil and gas business income (loss) is taxable only to the partner’s resident state.
My questions are: Does this mean that I don’t have to claim this income on my Federal Income Tax Return? How would I accomplish the removing of this income from my Tax Return?

Thanks for any help!!!!

Answer: Yes you still have to report on federal. Since it is offshore it can be a gray area for the states; that’s what the explanation is about.

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Question: Will A Mortgage Company Refinance Me For Tax Lien?

I was hospitalized 4 years ago and had to have a major surgery with a much longer recovery than I ever anticipated. I live alone, I dropped many of my responsibilities, it all fell by the wayside and actually it is only the last year I’m beginning to catch up. I didn’t file that year and I received an IRS letter recently with calculated penalties and interest of a little over $30k. On top of that I have outstanding uncollected hospital bills of about $30k. I have a home I inherited free and clear that is valued around 120k. My question is: Can I find a mortgage company that will deal with me though I have terrible credit and never had a mortgage? What kind of loan amount would be available? And what would likely be the interest range/terms for someone like me? Thing is, I don’t want to lose my house right when I’m just beginning to pull my life back together. thanks in advance for your thoughts.

Answer: The tax lien is your worst enemy right now. Now that you own this home they could seize it and auction it to pay your back taxes. You need to contact the IRS and setup a plan to repay this debt and stick to it before they take your home. They can and do seize property (just ask willie nelson) and it is only a matter of time before they find out about this property. I doubt any lenders will touch this until the lien is gone. If they were to loan you money they would be at risk of loosing their collateral to the IRS. If your home goes to auction your chances of getting the homes value would be greatly reduced, especially in this market.

You can reset Social Security

Q: I started collecting Social Security benefits when I turned 62. I wasn’t working at the time and needed the income. I am now 64 and working again. I don’t need the Social Security income right now and wish I had never signed up. Is there anything I can do? A: Yes. But don’t wait.

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