The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Paying children to work||Date: 7/14/1999 9:59 PM|
|Author: TMFTaxes||Number: 17327 of 121598|
[[This wouldn't save you in self employment taxes, because you will just be paying
their SS taxes. But you will save a lot in income taxes for his profit will be
reduced by ~$9,700. And thus his savings would be his tax rate times that
One of the additional beautiful things about this strategy is that the kids DON'T have to pay any FICA taxes...either employer or employee portion...as long as they are under age 18. And they don't have to pay any FUTA (fed unemployment payroll taxes) if they are under age 21.
It's really a nice deal.
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