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Wages, fringe benefits, worker status, clergy and military

SEE 1 Chapter 5 · IRS outline 2A1, 4A6, 4A7

Wages are the biggest income item on most returns, and the W-2 is only the start. Some perks are taxed and some are not; some workers are really employees even when paid on a 1099; ministers live under a split set of rules; and soldiers in a combat zone can earn pay that never reaches their return. Nadia's clients this chapter include Grace, who works for a hospital, Pastor Ruth Adeyemi, and Sergeant Marco Diaz.

In this chapter

1. Wages, bonuses and what the W-2 is telling you
2. Fringe benefits: what is excluded
3. Employee or independent contractor
4. Members of the clergy
5. Members of the military

This chapter has 5 lessons and 64 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Taxable and excluded compensation
• fringe benefits
• employee or contractor
• clergy housing and dual status
• combat pay and military rules

Chapter 4: Dependents · Chapter 6: Interest, dividends, constructive receipt and the kiddie tax