| Taxation of Strike or Lockout Benefits |
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| Generally strike or lockout benefits that a taxpayer receives from a union out of regular union dues are taxable as a form of compensation. These taxable benefits include cash and the fair market value of other property received. However, if a taxpayer has made a voluntary contribution to a strike fund, any benefits that he or she may receive from the fund are tax-free up to the amount of the contribution. The remainder of the benefits will be taxable as wages. More... |
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| Enforcement Against Nonfilers |
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| It is the obligation of all citizens and residents to comply with the requirements of the tax laws by filing returns and paying taxes. The Internal Revenue Service takes the position that taxpayers who fail to file income tax returns and who stop paying taxes pose a serious threat to the economy of the nation. Therefore, the IRS is using its Criminal Investigation personnel for outreach, education, and enforcement of the tax laws if they have been violated. More... |
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| Federal Taxation of Workers' Compensation Income |
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| Generally, gross income received by an individual is taxable by the federal government. A notable exception is for workers' compensation income. Workers' compensation, either received by the injured worker or his survivors, is completely exempt from federal taxation as long as it is paid under a Workers' Compensation Act or a statute that operates in the nature of a Workers' Compensation Act by providing income for injuries or illness suffered in the course of the worker's employment. Basically, the statute must restrict the payment of benefits to work-related disabilities. More... |
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| Tax Implications of Tuition Reimbursements |
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| If you receive tuition reimbursement from your employer for undergraduate or graduate level courses, you may not have to include the payment in taxable income if it satisfies certain Internal Revenue Service requirements. First, the reimbursement must be pursuant to a qualified educational assistance plan, and second, it must not exceed $5,250 each year. If the reimbursement meets both of these requirements, your employer should not include the benefit with your wages, tips, and other compensation. More... |
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| Educator Expense Deduction |
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| Eligible educators are entitled to deduct up to $250 from gross income for unreimbursed out-of-pocket expenses incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials used in the classroom. If the educator teaches courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics. More... |
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