11/18/2019
I have been reading up on all the new things in the coming tax year. Child Tax Credit is 500.00 per dependent and the child must live with taxpayer. Now you can also claim older child, parent, cousin etc , but they MUST live with taxpayer all year long. Earned Income Credit. Income on this is average 2445.00.
If family members all work in the same business, such as husband and wife, they can split the income between them as long as they both file separate Schedule C or F. That way both are paying into social security instead of just one.
If you employ your minor child who is under 18, you can pay them for helping with work and you do not have to pay social security or medicare on them and you can deduct it on your taxes. They just need to file a W-4 and you file a 1099 on them.
If your own a business or farm it is required by IRS ruling that you keep a written record of income and expenses. It may be electronic or hand written as long as their is proof of income and expenses.
See you next time with more information of the coming years taxes.