Tax Tip: hire your children! Has anyone considered this?

12. Child labor

"It's always good to employ your kids," says Carter. Depending upon how much you paid them, they might be able to avoid income taxes. Plus, there is no Social Security tax when you hire your child who is 17 or younger and you can deduct the salary as a business expense. This break is available, however, only if you operate as a sole proprietor or as a partnership in which you and your spouse are the only partners. If your business runs as a corporation, then it, not you, are considered the employer and the corporation is not relieved of the tax liabilities.

Make the money go even further. Have your child contribute to a Roth IRA, says Carter. Not only have you gotten a nice tax deduction from the salary and trained your youngster to save, you've also help establish a nest egg for his or her future.

Read more: A dozen deductions for your small business http://www.bankrate.com/finance/money-guides/a-dozen-deductions-for-your-small-business-1.aspx#ixzz1kAfiNQLE

所有跟帖： 

• Not very practical -Cupertino枇杷- ♂ (458 bytes) () 01/23/2012 postreply 00:36:41

• I think it is not worthy. I have pay my -meowi- ♀ (212 bytes) () 01/23/2012 postreply 07:52:28

• No social security if the S Corp pay her through you in subcontr -Cupertino枇杷- ♂ (386 bytes) () 01/23/2012 postreply 09:16:59

• Thanks. I afraid of IRS check on it too. -meowi- ♀ (0 bytes) () 01/23/2012 postreply 09:26:48

• It is s corp pay her, not me. I get W-2 from s corp and -meowi- ♀ (287 bytes) () 01/23/2012 postreply 09:32:11