Most Americans don't know there are legitimate ways using tax deductions to keep more of your hard earned money in your pocket and it is all perfectly legitimate? Federal and State taxes are a dirty word to most US residents, but what if you were making the tax code a benefit instead of a feared monster?
In the great USA, we pay a horrid thing called income tax. I know Sen. Joe Biden say's it patriotic and all, but I can think of many other patriotic things I'd rather be doing. Did you ever pay attention to why there are two figures on your check stub, the amount you made then the figure you actually get? Even after allowed standard tax deductions it is still much less money you're taking home than you earned.
At tax time a proprietorship operates a little differently, they benefit from spending before tax is paid. Ultimately, paying a smaller tax. When you have a job you go to work and put in x number of hours to receive a paycheck that taxes are held from, then you buy things that you need with the money which is left after having the tax withheld.
When you have a company you go to work, earn the money, buy what you need and then pay taxes on what is left-over. Pretty neat idea, don't you think? The business tax system does just that. It operates drastically different than what the average American knows about the 'standard' tax system.
There are simple tax deductions that you can receive with your company that allows you to pay your children to help you in your business as a paid employee! Yes, just like any other person out there that you could hire as an employee, but with much greater benefit & savings to you. Think of it instead as a tax allowance they could earn a pre-tax income from.
Now we are not talking about lying or creating fraud on a tax return, as some would rather think of it. Fraudulent tax activity can land you in a heap of misery, so avoid it. But, even if you have a young child, they can still locate prospects numbers online right? When they do, you may just be able to issue them a paycheck with that 'thank you'!
Won't you be pleasantly surprised when little Johnny or Suzy figure out there's 'money in those hills'. They will be eagerly helping you find more jobs to do in your business. This is all legitimate work you would hire staff for that can be turned over to your children and the income you paid them will qualify as a tax deduction for you.
An exciting thing that makes this tax deduction so nice is you get to 'purchase' things with pre-tax money that you never thought you could, like your daughters birthday gift for their friend. Now they pay for it from their paycheck and you don't have to. Or your child could begin paying for their own movie tickets and baseball lessons.
And if all that were not great enough, you do not have to pay payroll taxes on your minor kids earnings or social security tax! The benefits just keep rolling in, no wonder there are so many companies labeled '...and son', it is for the tax deduction as well as the family tradition of growing a successful business together.
Your employee children will also be advantaged in most instances where you pay them less than $5,300 (amount changes annually). Because, under this amount of annual wages your childs income is exempted and they owe no federal income tax either.
Having a business is a terrific way to benefit from these terrific everyday tax deductions and they've been available for years, even though unknown to most W-2 workers. Unbelievably a business is not that hard to start, do you tutor, sell online or write from home for extra money? If so you have a business. Do you consult, sell a product or service with a network marketing company? If you have a business then you deserve every one of these deductions & thousands more that are available to you.
As simple and lucrative as it is, I am amazed that more Americans have not started a businesses. Not only for the extra income it can create for your family, but the huge tax deductions you can get just by having one. Did you know you can in most cases use these deductions to lower the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business revenue? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a professional who is readily available can tell you all about it.
In the great USA, we pay a horrid thing called income tax. I know Sen. Joe Biden say's it patriotic and all, but I can think of many other patriotic things I'd rather be doing. Did you ever pay attention to why there are two figures on your check stub, the amount you made then the figure you actually get? Even after allowed standard tax deductions it is still much less money you're taking home than you earned.
At tax time a proprietorship operates a little differently, they benefit from spending before tax is paid. Ultimately, paying a smaller tax. When you have a job you go to work and put in x number of hours to receive a paycheck that taxes are held from, then you buy things that you need with the money which is left after having the tax withheld.
When you have a company you go to work, earn the money, buy what you need and then pay taxes on what is left-over. Pretty neat idea, don't you think? The business tax system does just that. It operates drastically different than what the average American knows about the 'standard' tax system.
There are simple tax deductions that you can receive with your company that allows you to pay your children to help you in your business as a paid employee! Yes, just like any other person out there that you could hire as an employee, but with much greater benefit & savings to you. Think of it instead as a tax allowance they could earn a pre-tax income from.
Now we are not talking about lying or creating fraud on a tax return, as some would rather think of it. Fraudulent tax activity can land you in a heap of misery, so avoid it. But, even if you have a young child, they can still locate prospects numbers online right? When they do, you may just be able to issue them a paycheck with that 'thank you'!
Won't you be pleasantly surprised when little Johnny or Suzy figure out there's 'money in those hills'. They will be eagerly helping you find more jobs to do in your business. This is all legitimate work you would hire staff for that can be turned over to your children and the income you paid them will qualify as a tax deduction for you.
An exciting thing that makes this tax deduction so nice is you get to 'purchase' things with pre-tax money that you never thought you could, like your daughters birthday gift for their friend. Now they pay for it from their paycheck and you don't have to. Or your child could begin paying for their own movie tickets and baseball lessons.
And if all that were not great enough, you do not have to pay payroll taxes on your minor kids earnings or social security tax! The benefits just keep rolling in, no wonder there are so many companies labeled '...and son', it is for the tax deduction as well as the family tradition of growing a successful business together.
Your employee children will also be advantaged in most instances where you pay them less than $5,300 (amount changes annually). Because, under this amount of annual wages your childs income is exempted and they owe no federal income tax either.
Having a business is a terrific way to benefit from these terrific everyday tax deductions and they've been available for years, even though unknown to most W-2 workers. Unbelievably a business is not that hard to start, do you tutor, sell online or write from home for extra money? If so you have a business. Do you consult, sell a product or service with a network marketing company? If you have a business then you deserve every one of these deductions & thousands more that are available to you.
As simple and lucrative as it is, I am amazed that more Americans have not started a businesses. Not only for the extra income it can create for your family, but the huge tax deductions you can get just by having one. Did you know you can in most cases use these deductions to lower the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business revenue? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a professional who is readily available can tell you all about it.
About the Author:
Author, Terry A. Sacia has published Reduce Your Tax Burden by Employing Your Spouse and Children since 2000. Learn about how to ethically and legally begin taking home thousands more in earned income if you're currently working for someone else. Read more about company tax deductions here at www.HireYourKidsTaxFree.com
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