I'll bet you did not know there are legitimate ways using tax deductions to keep more of your earned money in your pocket and it is all perfectly legal? Federal and State taxes are a dirty word to most Americans, but what if you were making the tax code a benefit instead of a fright?
In this country we pay a horrible thing called income tax. You know the reason there are two figures on your pay stub, the amount you made then the amount you actually get? Even after allowed standard taxed deductions it is still much less money you're taking home.
When you work for 'the man' you go to work and put in x amount of hours to receive a paycheck that taxes are withheld out of, then you buy things that you need with what is left after having the tax withheld. A proprietorship operates a little differently, they benefit from spending before tax is paid. Ultimately, paying a smaller tax.
When you run a company you go to work, earn the money, buy the supplies and items which you need and then pay taxes on what is left. Makes perfect economic sense, don't you think? The business tax system does just that. It operates drastically different than what the average American income earner knows about the 'standard' tax system.
There are also tax deductions that you can get with your business that even allows you to pay your spouse and children to work for you! Yes, just like any other person you could hire as an employee, but with much greater benefit to you.
Now we are not talking about lying or fudging on a State or Federal tax return, as some would rather call it. Fraudulent tax activity can land you in a heap of misery, so avoid it. But, even if you have a young child, they can still locate prospects numbers online right? When they do, you may just be able to smile and hand them a big paycheck with that 'thank you'!
I promise when little Sam or Bella figure out there is money to be made they will help you find them more jobs to do in your business. Legitimate work you could hire employees for can be turned over to your children and that will qualify their income for a tax deduction.
A big thing that makes this tax deduction so nice is you get to 'purchase' things with pre-tax money that you never thought you could, like your childs birthday gift for their friend. Now they pay for it from their earned income and you do not have to. Or your son could begin paying for their own movie tickets and gymnastics fees. That could just be music to your ears, dad!
And if all that were not great enough, you do not have to pay payroll taxes on your minor childrens earnings or social security tax! The benefits just keep rolling in, no wonder there are so many businesses labeled '...and son', it is for the tax deduction as well as the family tradition of growing a successful company together.
Your new employee children will also be benefited in most taxable instances where you pay them less than $5,300 (this amount changes annually). Because, under this amount of annual earnings your childs income is exempted and they owe no federal income tax either.
Having a company is a terrific way to take advantage of these terrific everyday tax deductions and they've been around for years, even though unknown to most W-2 workers. Unbelievably a company is not that difficult to start, do you tutor, sell online or write from home for extra money? If so you have a company. Do you consult, market a product or service with a network marketing company? If you have a company then you deserve every one of these deductions & thousands more that are available to you.
As easy and lucrative as it is, I am startled why more Americans have not started a businesses. Not only for the extra money it can generate for your family, but the huge tax deductions you can get just by having one. Did you know you can in most cases use these deductions to lower the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business revenue? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a tax pro who is readily available can tell you all about it. - 16003
In this country we pay a horrible thing called income tax. You know the reason there are two figures on your pay stub, the amount you made then the amount you actually get? Even after allowed standard taxed deductions it is still much less money you're taking home.
When you work for 'the man' you go to work and put in x amount of hours to receive a paycheck that taxes are withheld out of, then you buy things that you need with what is left after having the tax withheld. A proprietorship operates a little differently, they benefit from spending before tax is paid. Ultimately, paying a smaller tax.
When you run a company you go to work, earn the money, buy the supplies and items which you need and then pay taxes on what is left. Makes perfect economic sense, don't you think? The business tax system does just that. It operates drastically different than what the average American income earner knows about the 'standard' tax system.
There are also tax deductions that you can get with your business that even allows you to pay your spouse and children to work for you! Yes, just like any other person you could hire as an employee, but with much greater benefit to you.
Now we are not talking about lying or fudging on a State or Federal tax return, as some would rather call it. Fraudulent tax activity can land you in a heap of misery, so avoid it. But, even if you have a young child, they can still locate prospects numbers online right? When they do, you may just be able to smile and hand them a big paycheck with that 'thank you'!
I promise when little Sam or Bella figure out there is money to be made they will help you find them more jobs to do in your business. Legitimate work you could hire employees for can be turned over to your children and that will qualify their income for a tax deduction.
A big thing that makes this tax deduction so nice is you get to 'purchase' things with pre-tax money that you never thought you could, like your childs birthday gift for their friend. Now they pay for it from their earned income and you do not have to. Or your son could begin paying for their own movie tickets and gymnastics fees. That could just be music to your ears, dad!
And if all that were not great enough, you do not have to pay payroll taxes on your minor childrens earnings or social security tax! The benefits just keep rolling in, no wonder there are so many businesses labeled '...and son', it is for the tax deduction as well as the family tradition of growing a successful company together.
Your new employee children will also be benefited in most taxable instances where you pay them less than $5,300 (this amount changes annually). Because, under this amount of annual earnings your childs income is exempted and they owe no federal income tax either.
Having a company is a terrific way to take advantage of these terrific everyday tax deductions and they've been around for years, even though unknown to most W-2 workers. Unbelievably a company is not that difficult to start, do you tutor, sell online or write from home for extra money? If so you have a company. Do you consult, market a product or service with a network marketing company? If you have a company then you deserve every one of these deductions & thousands more that are available to you.
As easy and lucrative as it is, I am startled why more Americans have not started a businesses. Not only for the extra money it can generate for your family, but the huge tax deductions you can get just by having one. Did you know you can in most cases use these deductions to lower the taxes you pay from your full-time job that you have right now? Even though that income is not part of your business revenue? However, you will want expert advice on how to take a business tax deduction. Sit down with or call a tax pro who is readily available can tell you all about it. - 16003
About the Author:
Author Terry A. Sacia has distributed Reduce Your Tax Burden by Hiring Your Spouse and Children since 2000. Learn about how to ethically and legally begin taking home thousands more in earned income if you're currently working for someone else. Read more about company tax deductions here at www.HireYourKidsTaxFree.com
