hiring family members: Got your kids on payroll yet? [Hiring family members] - 09/25/21 04:53 AM
Got your kids on payroll yet? When you hire your under-age-18 child, you shift taxable income from you to your child. Why does hiring family members matter? Because if you're single with taxable income of $40,526 or higher - or married with $81,050 or higher - you're in the 22% (or higher!) federal tax bracket. At the same time, your child is in the 0% tax bracket on the first $12,550 they earn. Think of it this way: $12,550 deduction for you, and no taxable income for your child. Tax strategists call this a "shifting strategy": you shift income downstream from your higher bracket to another family … (3 comments)

 
Jim Flauaus, Your Tax Problem Solver (Anchor Tax Relief LLC)

Jim Flauaus

Your Tax Problem Solver

Chesapeake, VA

More about me…

Anchor Tax Relief LLC

Address: 1228 Progressive Drive, Suite 202, Chesapeake, Virginia, 23320

Office: 757-312-0098



Listings

Links

Archives

RSS 2.0 Feed for this blog