Do I Give Classical Conversations a 1099-MISC?

Carol Topp starts a new feature on her Homeschool Leader podcast: Q&A with HomeschoolCPA. 

In this first Q&A session, she is asked by a Classical Conversations® Director of she needs to give Classical Conversations® Corporation a 1099-MISC for the licensing fees she pays them.

It’s an excellent question and Carol Topp, CPA explains the purpose of the 1099-MISC, who needs to get one, and why.


In the podcast Carol mentioned an online service she uses to prepare her 1099-MISC statements, Yearli.com.  If you use this referral link you save 15% and Carol makes a small commission.


In the podcast Carol mentioned her book Paying Workers in a Homeschool Organization. This 130 page book covers paying workers as employees or independent contractors. It includes sample forms, tips, and advice to help you pay workers in accordance with the IRS laws to help your organization pay their workers correctly. Written specifically for homeschool organizations and businesses.


CC Directors and tutors may find Carol’s latest book Taxes for Homeschool Business Owners to be useful this tax season.

And she’s giving it away for free, but only in January 2020!

The ebook is 60 pages long and contains information on:

  • Business Start Up
  • LLC status
  • Tax Deductions
  • Tax Forms
  • Sample Tax Returns
  • Self Employment Tax
  • Paying Yourself
  • Paying Others
  • Businesses Using Churches
  • Should My Homeschool Program Be a Nonprofit?

This ebook is a great resource for:

  • Tutors or teachers for a homeschool program paid as an Independent Contractor
  • Classical Conversations®Directors
  • CC tutors
  • Coaches, musicians, artists, etc. hired to teach at a homeschool co-op

Get your copy of the ebook Taxes for Homeschool Business Owners today Homeschoolcpa.com/TAXESHSBIZ

End of Year Tasks for Nonprofit Homeschool Groups

Happy New Year! In the new and out with the old.

But wait! Not so fast!

There are several tasks a nonprofit homeschool group needs to do to finish out the prior year before forging ahead.

1. Wage Form W-2 to employees by January 31st:  Your treasurer should furnish Form W-2 to employees who worked for your organization during the past year by Jan 31st.
The cover sheet for the W-2s, called a transmittal form W-3 transmittal form is due the end of January as well.

2. Independent Contractor Form 1099-MISC are also due January 31. Provide a Form 1099-MISC to individuals paid $600 or more in 2019 for performing a service for your nonprofit. Like the W-2s, the 1099s have a cover page, Form 1096 transmittal form that is also due by Jan 31st.

In 2020, the IRS will be replacing the 1099-MISC for non-employee compensation with a separate form called 1099-NEC. It will be used in early 2021 to report 2020 payments to independent contractors. Click here to see the IRS draft.

PaperW-2s and 1099-MISCs are a nuisance to fill in and mail, so do what I do and file online.
I used a service called Yearli.com for years. They are fast, easy and inexpensive.
Check them out! https://mbsy.co/rzrbp
Using this link gets you a 15% discount and (full disclosure) I make a small commission.

The start of a new year is a great time to determine if your workers should be classified as an employee or independent contractor.

Worker misclassification is a serious issue and can cause significant financial hardship and has caused several businesses to close. Penalties for misclassifying a worker as an independent contractor are very stiff and strictly enforced so now is a good of time to make sure every one of your workers are properly classified. Read more here

My book Paying Workers in a Homeschool Organization will help to determine if a worker is an Independent Contractor or employee.

For more specific advice, I offer a Worker Classification Consultation.


3. Contribution statements for donations your nonprofit received in 2019. A donation is recorded when it is received even if you don’t deposit the check until the new year. The only exception to that rule is if you receive a check in the mail and the envelope is dated December 31st or before. You can count that as a donation in 2019.
Your contributions statements to donors should be mailed in January so donors can prepare their tax returns.

Those tasks will keep your treasurer (or hired bookkeeper) pretty busy in January!

If you’re needing bookkeeper, I recommend Mary Musick, CPA (inactive) and current homeschool mom. Mary runs a bookkeeping service and can help your homeschool nonprofit with bookkeeping and payroll. Her email is hfbkkpg@gmail.com.

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Carol Topp, CPA unavailable May 2-15, 2019

I apologize, but I will be unavailable to receive or reply to emails from May 2-15, 2019.

It would be best to contact me after May 15, 2019.

Thank you!

Carol Topp, CPA

HomeschoolCPA.com

HomeschoolCPA unavailable until November 6, 2017

Image from PilgrimTours.com

I will be unavailable from October 24, 2017 through November 5, 2017. I will not be replying to emails and will be unavailable by phone.

I will be on a long-desired trip to Israel, walking where Jesus walked!

I’m traveling with a group called Pilgrim Tours. I’ve heard nothing but rave reviews about their tours. It will be a busy 10 days since we are traveling up and down the country seeing Galilee, the Dead Sea, Masada, Jerusalem and much more.

Thank you in advance for your patience as it will take me some time to catch up after I return.

Carol Topp, CPA

HomeschoolCPA.com

HomeschoolCPA needs help and is hiring (please share!)

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Do you have an accounting background and want to help homeschoolers?

I’m Carol Topp, CPA, the HomeschoolCPA, and I’m looking to hire someone to help me.


This is a great opportunity for a homeschooling parent with an accounting background. It’s flexible, home-based, and very rewarding!


Description:

I’m looking for a subcontractor who will prepare IRS Forms 1023 and 990/990-EZ for my homeschool nonprofit clients. The completed forms will be submitted to me for review and signature. You will be an independent contractor, not an employee of Carol Topp, CPA, LLC.

You will work remotely from your home/office and chose your work hours. The hours are flexible and could be sporadic. There should not be any rush jobs. You should have several weeks to get the forms prepared, but there will be deadlines.

You will not be responsible for recruiting clients or corresponding with clients, but you are expected to keep client information confidential.

Duties:

  • Prepare IRS Form 1023 Application for Tax Exempt Status
  • Prepare Form 990, 990-EZ Annual Information Returns for Tax Exempt Organizations
  • Correspond with Carol Topp on a regular basis on the progress, data needed from the client, and questions you have.
  • Become familiar with IRS and state nonprofit filing forms. This may mean taking classes on preparing these forms. These classes are your responsibility.
  • Comply with federal, state, nonprofit filing requirements by studying existing and new regulations.

Qualifications:

  • Education (Bachelors degree from four-year college or university) and experience in accounting. CPA designation strongly preferred.
  • Familiarity with IRS Form 1023 and 990/990-EZ either through experience or through education.
  • Homeschooling experience desired.
  • Ability to work independently.
  • Attention to detail, deadline-oriented, confidentiality, time management

Compensation:

Compensation will be 50% of my fee charged to my client. The fee can be negotiated after a trial period based on experience and successful completion of preparing Forms 1023 and 990/9990-EZ in a timely and correct manner. Subcontractor will be paid when final form is delivered to Carol Topp, CPA.

Please share this information with everyone in your local homeschool group, though social networks, email and with your friends who you think might be interested.

If you’re qualified and interested in helping me, email me some information about yourself, your education and experience to Carol@HomeschoolCPA.com. We’ll set up a phone interview and discuss the job responsibilities.

 

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Thanks,

Carol Topp, CPA

Save

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Time off needed. HomeschoolCPA thanks you for your patience.

 

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Dear readers,

I will not be able to reply to your emails or posts here as quickly as I would like. I need to take a week or two off of work to help my 25 year old daughter who broke her leg this past weekend.

She cannot do much in her own. She needs help from two people to get into and out of bed, get to the bathroom,eat, etc. She is not to be left alone. I’m grateful that I work from home and that frequently my husband can work from home as well.

I’m also grateful that her accident (she slipped down a steep hill) happened one week after she moved back to Cincinnati, so we can take care of her.

Please pray for her pain to lessen and her healing to be quick.

Thank you for your patience.

Carol Topp, CPA
homeschoolCPA.com

Homeschool CPA, Carol Topp returning to work part time

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Dear friends, clients, and visitors,

I thank you all for your patience and your prayers for me during my surgery and recuperation. The surgery went well and the surgeons are pleased. If you’re curious what I had done, read more here: https://homeschoolcpa.com/previvor/

The recuperation is taking longer than I expected. I returned to part time work on January 5, 2016, but I can only sit at my computer for a few hours before I need a rest.

I may not reply to you emails in as timely manner as I would like, so please be patient.

I hope to return to full time work in February, Lord willing.

Thank you for your patience as I continue progressing (and resting) toward a full recovery.

 

Carol Topp, CPA

Carol Topp, the HomeschoolCPA, is unavailable until January 2016

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Dear homeschool leaders,

I value and love working with each of you, but I will be unavailable from November 15, 2015 until January 4, 2016. I am having some preventive surgery that involves a long recuperation time.

I will not be able to reply to your email or schedule phone consultations for several weeks.

I may to be able to offer limited replies to emails beginning mid December 2015 and hope to return to work part time by January 4, 2016, Lord willing.

If you need help while I am unavailable, please:

  • Search my blog. Go to HomeschoolCPA blog and enter a search topic in the search box on the right-hand column.Searchblog
  • Visit my FAQ page
  • Read the Articles I’ve written for homeschool leaders.
  • Read one of my books.
    • The IRS and Your Homeschool Organization.
    • Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out
    • Money Management in a Homeschool Organization
  • Listen to my podcast. I have several podcast episodes on topics that homeschool leaders frequently ask me.
  • Contact your state homeschool organization. They may be able to answer your questions.
  • Be patient. I will reply to your emails as soon as I can, but it may be several weeks.

Thank you for your patience and allowing me this extended period of recuperation.

Prayers for my surgery on November 20, 2015 and recovery are appreciated!

carol-thumnail

 

 

 

Carol Topp, CPA

Does your homeschool group publish curriculum? Nonprofits and copyrights webinar

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Has your homeschool group considered creating and selling its own curriculum?
Do you know what you need to know about trademarks and copyrights?

 

This webinar on copyrights for nonprofits might be interesting and helpful to you.
I’ll be attending and already submitted a question about copyright ownership by a nonprofit.

 

Ask the Nonprofit Lawyer: Everything You Wanted to Know about Nonprofit Copyrights and Trademarks

Register here (free)

Date: November 5, 2015
Time: 2 p.m. ET

In this Q&A-driven webinar, you’ll have the opportunity to submit your own questions to one of the nation’s leading nonprofit attorneys from the Venable law firm as he walks you through the essentials, highlights common traps and pitfalls, discusses best practices in the nonprofit community, and most importantly, gives you the thoughtful, practical, real-life guidance and tips that you need to know in order to protect your nonprofit in the U.S. and overseas, as well as optimize and capitalize on your nonprofit’s intellectual property.

This webinar is geared toward all nonprofits, probably very large organizations, not specifically homeschool organizations.  Some of the information may not apply to your organization, but if you publish curriculum or have questions about trademarks and copyrights, you might learn a lot!
Carol Topp, CPA

Is my homeschool group considered a school?

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Hi Carol,
I took a look at the 1023-EZ worksheet to see if we qualify for filing as a tax exempt organization. Question #11 asks if we are an educational facility. Then it goes on to define what they mean. I do not know how our organization would not fall into that category. Our goal is to support homeschooling families by providing weekly classes for middle and high school students. We do make it clear that our tutors are working alongside parents. Parents have the final decision on the grade their student will receive for the class. So, what do you think? Does that mean we do not qualify to apply for tax exempt status?

Virginia

 

Virginia,
Form 1023-EZ Eligibility Checklist Question #11 asks if your origination is a school, college or university described in section 170(b)(1)(a)(ii). That part of the Internal Revenue Code describes a school. I do not consider homeschool programs to be a school as the IRS defines “school.”

One aspect of a school is a “regular faculty,” which the IRS defines as

“qualified teachers instruct the students, and the same teachers do so on a recurrent basis.”

Source: Internal Revenue Manual  viewed https://www.irs.gov/irm/part7/irm_07-026-002.html#d0e549 on 5/11/15.

And by “qualified” the IRS means:

“certifications by the appropriate state authority or successful completion of required training.”

Source: Instructions for Form 1023

So when you look beyond the Eligibility Checklist into the guts of the IRS code, you’ll probably agree with me that homeschool organizations are not schools because they do not have regular, “qualified” faculty. Most of the teachers in your homeschool organization may be qualified to teach a class at your homeschool co-op, but are not state certified, nor trained as teachers.

Your homeschool organization (probably) qualifies to be a 501(c)(3) tax exempt organization as an educational organization, but not as a school.

I hope that helps!

Carol Topp, CPA