Ask a CPA

Yes. The IRS considers the reimbursement amount taxable wages and it should be included on your W-2. It will be reportable on IRS Form 1040 line 7 as wages.

A share of Common stock is an ownership interest in a corporation. Investors can profit from common stock in that they may receive stock dividends issued by the corporation and they may benefit from an increase in the value of their shares. There are no guarantees that either of these benefits will occur.

A Bond is a security that represents a loan from the purchaser of the bond to the issuing organization. The Organization may be a private company or a federal, state or local government. Bondholders receive a specific amount of interest on a regular basis and the return of their loan principal at the end of a stated period. A Bond provides a fixed amount of income. Its value will increase if interest rates fall and decrease if interest rates rise.

Cash equivalent investments are often called reserves. These represent short term loans ti high quality borrowers such as the U>S> Government. Examples of cash equivalent securities are Treasury bills and money market mutual funds. Cash equivalent investments offer stability of principal and high liquidity. Cash equivalent securities can be turned into cash easily and quickly. Due to the fact that risk is relatively low, the return on these investments is also relatively low.

In the most basic sense, risk can be defined as the chance of financial loss. The term risk is used interchangeable with uncertainty to refer to the variability of returns associated with a given asset. The more certain the return from an asset, the less variability and therefore the less the risk. Market risk is the chance you may lose money in a market decline.

Risk in the most basic sense is the chance of financial loss. Inflation erodes your purchasing power. Inflation risk is the chance that your savings lose purchasing power due to the steady increase in the cost of goods and services over time. Inflation is is a major threat for investors with a long time horizon.
These investors may want a large portion of their investment portfolios invested in securities that historically have outpaced inflation by a decent margin. Generally these investments are in common stock or common stock mutual funds.

Diversification is the spreading out of your investments among a number of different securities. Diversifying reduces risk because the value of yoyr holdings is not dependent on the performance of any single investment. A easy and quick way to diversify your investments is investing in a mutual fund.

A mutual fund pools the money of many individuals into a single fund. This fund is then used to buy a wide range of stocks, bonds, or other securities aimed at meeting a specific investment goal. When purchasing a share in a mutual fund, you are gaining a proportional share ownership of all the different investments in the fund. An investment in a mutual fund is a way to diversify your investments in a quick and easy manner. Mutual funds are investment companies regulated by the Investment Company Act of 1940.

Yes. Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Use E-File at www.irs.gov/efile and (EFTPS) the Electronic Federal Tax Payment System at www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.

As of January 2001, Form 940 can be filed over the internet. The methodology will be similar to the way Form 941 is currently being handled. IRS-approved providers are currently being finalized. Speak to your local CPA or check the IRS website at http://www.irs.gov/elec_svc/efile-bus.html.