Save Big on Taxes!
How It Works
Fact One: If your child earns less W2 income than the standard deduction of $16,100 they do not owe taxes, or need to file a Tax Return
Fact Two: If you have a child under age eighteen who works in your business their earnings are not not subject to Federal Payroll Taxes*
Fact Three: Their valid wages are still a Tax Write-Off to your Business
*Business Must be structured as a Sole Proprietorship, Single Member LLC, or Multi Member LLC where only the parents are partners.
How You Save
Step One: Set up your child as an employee of your company, track their hours, and pay them an appropiate wage
Step Two: All of their wages are a Tax write-off to your business. Shifting all of that income from your Tax Rate of up to 37%…to their Tax Rate of 0%
Example:
Your Business has Net income of $100,000.
All $100,000 would be Taxable, and you’d be in a Bracket of 22% +15.3% Self-Employment Tax
You Pay each of your kids $5,000 for working in your business during the year
You just Shifted $10,000 of income from your 22% Tax Bracket with an additional 15.3% Self-Employment Tax - to 0%!
You have Two Teenagers who work 20 hours a week in your business
You pay each of them the Maximum of the Standard Deduction of $13,850 AND Max out a ROTH IRA contributions of $7,500
This is a total of :
$32,200
That you’ve now shifted from your Tax Bracket to TAX FREE!
Super Charged Example:
