10 Strategies To Reduce Your Taxes - Tip #7 How To Get Into The Zero Tax Bracket
Hello everyone, we have already discussed six last-minute strategies to help you reduce your taxes, but we still have more tips to share with you. If you have followed our tax planning series, you should have learned a number of important tax tips such as safe harbor rules, maximizing business deductions, home-office deductions, auto deductions, retirement contributions, and investing in business assets to maximize deductions. Have you started implementing these strategies? If not, then do you know where you are in terms of your 2021 tax bill? And are you happy with your tax position or are you still looking for more deductions to reduce your taxable income. Well there is good news and bad news. Good news is with proper guidance, you still have a little bit of time to execute some last-minute tax strategies to reduce your tax bill. But bad news is TIME is running OUT! Fortunately, we are going to share with you one of the top tips today, “How to Get Into The Zero Tax Bracket!!!" Today, we will be sharing with you a helpful idea about shifting your income tax rate all the way from 37% down to zero percent. Don’t worry; this is completely legal because tax planning is NOT tax evasion. If you hire your children as employees to do work in your business, you may deduct their salaries from your business income as a business expense. These rules allow you to shift part of your business income from your own tax bracket to your child's bracket—which should be much lower than yours unless you earn little or no income. This can result in substantial tax savings. The tax benefits for hiring your children are significant, but you'll need to comply with the Fair Labor Standards Act (FLSA) regulations for employees. In addition, to make sure that you are able to substantiate work performed by your kids, it is also good practice to maintain a timesheet recording hours and tasks performed on a weekly basis because it is ideal to have everything in writing for proof and legal purposes. Hiring your kids is not just a great way to teach your children the value of hard work, but it is also a great tax strategy to increase your tax savings. Interested to uncover the real secrets about this strategy, please watch our video to learn the tricks.