Tax Insights – July 2019
Did you know if you are a sole proprietor, husband-wife partnership or one-person LLC that is a disregarded entity, you can hire your children that are under 18 years of age as a way to lower your tax bill? Any wages paid are a business deduction and as long as each child makes less than $12,000 a year, they are not required to file a tax return. As an added benefit they are not subject to FICA tax.
Quick Tip: You will have to file payroll reports and keep good records of time worked.
Tip provided by:
Tilley & Lincoln, PLLC
CERTIFIED PUBLIC ACCOUNTANTS
691 Addison Avenue – Twin Falls, Idaho 83301
Phone (208) 733-5811 – Fax (208) 733-5841