Here is a two-fold method to save for your child’s future while getting a deduction for your sole proprietorship now. If you have a child who is at least 13 you can you can pay them while they do simple office work like filing or typing or cleaning (especially if you already give them an allowance and they want a raise). You can deduct the full salary on your sole proprietorship and not pay social security, medicare and unemployment insurance taxes on your child under age 18. If you pay them under $5,800 they will not owe federal or state income taxes in 2011. Email me at bstonercpa@sbcglobal.net and we can discuss this further and map out a strategy to save some taxes.
Brian’s Tax Musings
Yesterday I talked a little about the presidents new jobs creation plan. Today there was an article in the Wall Street Journal that warns what will happen to taxes in 2013 if the plan is passes as is. Here is the link:http://online.wsj.com/article/SB10001424053111904353504576567460396287134.htmlIf this gets passed, enjoy the next 13 months, cause after that it looks like the economy may junp off a cliff.
Brian’s Tax Musings
In his speech last week, the president outlined several changes in income taxes for 2012 on – called the American Jobs Act = that will raise taxes for some (over $200,000 in AGI for singles, over $250,000 for married joint filers – haven’t we heard this before?) and lower payroll taxes and give tax credits to others. Here is a link to an article about the proposed changes:http://taxes.about.com/od/deductionscredits/a/American-Jobs-Act.htmIt will be a tough fight through Congress to get this passed as is. I will keep you posted on new developments.