Tax Benefits from Hiring Children to Work in the Family Business

As a business owner, you have the opportunity to save income tax and payroll tax (when looking at the family as a whole) by putting your children on the payroll.  In doing so, you may be able to turn high-taxed income into tax-free or low-taxed income, achieve social security tax savings (depending on how your business is organized), and even make retirement plan contributions for your child.  In addition, employing a child age 18 (or if a full-time student, age 19-23) may be a way to save taxes on the child’s unearned income, as explained below.  Here are the key considerations.

Turning High-Taxed Income into Tax-Free or Low-Taxed Income

You can turn some of your high-taxed income into tax-free or low-taxed income by […]

What If Social Security Funds Ran Out?

Have you ever wondered what would actually happen if the Social Security trust funds are exhausted (which is currently projected to occur in 2033 according to the Social Security Trustees Report)?  The Congressional Research Service has published a report that explores this seemingly inevitable scenario.  Read more on FAS.org

By |October 28th, 2013|Categories: Individual Tax, Retirement Planning|Tags: |Comments Off on What If Social Security Funds Ran Out?
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