One of my clients who is a real estate agent said that she sat in a session of a Tax attorney who said (if she understood it correctly), that you could take an exclusion for working a family member in your business and take it off as a deduction. Is this true?
When you pay your working family member wages, you report those wages on form W-2. The wages and associated employer payroll taxes are deductible on Schedule C. The wages are included on that family member's 1040. So if it's a spouse, you're moving it from Schedule C to 1040 Line 1.
When you pay your working family member wages, you report those wages on form W-2. The wages and associated employer payroll taxes are deductible on Schedule C. The wages are included on that family member's 1040. So if it's a spouse, you're moving it from Schedule C to 1040 Line 1.
Maybe the attorney was talking about like Fica/Medicare/Futa for the "exclusion", not the word I would have used. But that would make sense for a child or spouse employee.
When is the next class? I'm eager to learn about things I never heard of before.
Slava Ukraini!
0
Cheers
You are leaving ProConnect.
You have clicked a link to a site outside of the ProConnect Community. By clicking "Continue", you will leave the Community and be taken to that site instead.
