Category: Uncategorized

In Paying for College—a Handy-Dandy Strategy, you learned that you could pay your college student, for example, $23,255 for a one-time job that was not subject to self-employment taxes. With this strategy, you deducted the $23,255 and your child paid $1,028 in 2021 taxes.1 This is terrific, but you might ask: 2. Since the $23,255 is…

As you likely know, at this website there are about 40 articles with some discussion of your business hiring your children as W-2 employees. The hire-your-child strategy works best for the Schedule C proprietorship because when the proprietor hires his or her under-age-18 child, the tax code exempts both the child and the proprietorship from…