Taxes are a dirty word to most Americans, but what if you were making the tax code a benefit you instead of a seeing it as a feared monster? Most people working for someone else don't know there are ethical ways using tax deductions to keep more of their hard earned money in their pocket instead of sending it up to Uncle Sam! This is all perfectly ethical?
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 payroll stub, the amount you earned then the one you actually get? Even after allowed standard tax deductions it is still much less money you're taking home than you earned.
When you work for 'the man' you go to work and put in x amount of hours to receive a paycheck that taxes are held from, then you buy things with what is left after having the tax withheld. A business operates a little differently, they benefit from spending before tax is withheld. Ultimately, paying a smaller tax.
When you run a business you go to work, earn your money, buy the supplies and items which you need and then pay taxes on what is left-over. Makes perfect economic sense, don't you think? The business tax system does just that. It operates drastically different than what the average American tax payer knows about the 'standard' tax system.
There are simple tax deductions that you can receive with your business that allows you to pay your kids and spouse 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 State or Federal tax return, as some would rather call it. Fraudulent tax activity can land you in a heap of trouble, so avoid it. But, even if you have a young child, they can still carry in your office supplies right? When they do, you may just be able to smile and hand them a big paycheck with that 'thank you'!
You could be pleasantly surprised when little Spencer or Ava figure out there is money to be made. They will be eagerly helping you find them more jobs to do in your company. This is all legitimate work you could hire employees for that can be turned over to your kids and the income you paid them will qualify as a tax deduction for you.
A big 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 childs birthday gift for their friend. Now they pay for it from their earned income and you do not have to. Or your child could begin paying for their own movie tickets and basketball classes. That could just be music to your ears, dad!
If all that were not splendid enough, you do not have to pay payroll taxes on your minor sons or daughters wages or social security tax! The benefits just keep rolling in, no wonder there are so many companies titled '...and son'. I suppose a few reasons are for the tax deduction as well as the family tradition of growing a successful company together.
Your employee children will also be benefited 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.
In short having a business is a great way to benefit from everyday tax deductions and they've been around for years. Unbelievably a company is not that hard to start, do you tutor, sell online or write from home for extra money? If so you have a company. Do you consult, sell a product or service with a mlm company? If so, you have a company.
As easy and lucrative as it is, I am startled why more citizens 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 cut the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business income? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a tax pro who is readily available can tell you all about it. - 15465
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 payroll stub, the amount you earned then the one you actually get? Even after allowed standard tax deductions it is still much less money you're taking home than you earned.
When you work for 'the man' you go to work and put in x amount of hours to receive a paycheck that taxes are held from, then you buy things with what is left after having the tax withheld. A business operates a little differently, they benefit from spending before tax is withheld. Ultimately, paying a smaller tax.
When you run a business you go to work, earn your money, buy the supplies and items which you need and then pay taxes on what is left-over. Makes perfect economic sense, don't you think? The business tax system does just that. It operates drastically different than what the average American tax payer knows about the 'standard' tax system.
There are simple tax deductions that you can receive with your business that allows you to pay your kids and spouse 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 State or Federal tax return, as some would rather call it. Fraudulent tax activity can land you in a heap of trouble, so avoid it. But, even if you have a young child, they can still carry in your office supplies right? When they do, you may just be able to smile and hand them a big paycheck with that 'thank you'!
You could be pleasantly surprised when little Spencer or Ava figure out there is money to be made. They will be eagerly helping you find them more jobs to do in your company. This is all legitimate work you could hire employees for that can be turned over to your kids and the income you paid them will qualify as a tax deduction for you.
A big 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 childs birthday gift for their friend. Now they pay for it from their earned income and you do not have to. Or your child could begin paying for their own movie tickets and basketball classes. That could just be music to your ears, dad!
If all that were not splendid enough, you do not have to pay payroll taxes on your minor sons or daughters wages or social security tax! The benefits just keep rolling in, no wonder there are so many companies titled '...and son'. I suppose a few reasons are for the tax deduction as well as the family tradition of growing a successful company together.
Your employee children will also be benefited 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.
In short having a business is a great way to benefit from everyday tax deductions and they've been around for years. Unbelievably a company is not that hard to start, do you tutor, sell online or write from home for extra money? If so you have a company. Do you consult, sell a product or service with a mlm company? If so, you have a company.
As easy and lucrative as it is, I am startled why more citizens 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 cut the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business income? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a tax pro who is readily available can tell you all about it. - 15465
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
