Message Font: Serif | Sans-Serif
No. of Recommendations: 1
We are setting up his "payroll" status and are looking for tips on ANY legal ways that we can reduce the amount of tax they deduct at the source.

Get a job in Canada. Just Kidding! The amount of money withheld by your employer is actually unrelated to the amount of tax you will end up owing (and hopefully paying, thus avoiding unspeakable horrors). You fill out a form called a W4 which tells your employer how much to withhold. There is a worksheet to help you figure out a proper amount. If you do not have enough withheld to cover the tax you owe at the end of the year (actually by the following April 15th), you may be subject to a penalty, if the shortfall exceeds $1,000. You can adjust during the year if things change. A number of things can be deducted from your gross income to establish your taxable income. They include medical expenses, home mortgage interest, property taxes, state and local income taxes, charitable contributions and some other things. You should definitely hire a professional for your first time through this maze. Good luck!
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.