Summer is a Time for Vacations and Tax Planning1 min read
Consider putting children on the payroll during the summer months if you are a sole proprietor. Social Security and Medicare taxes do not apply to wages paid to your children under age 18. In addition, until they turn 21, their earnings are not subject to federal unemployment tax.
Sending your children to summer camp might earn you a deduction if employing them is not an option. Summer day camp expenses for kids under 13 can provide a tax credit of up to 35 percent, but remember, overnight camps do not qualify. To claim this credit usually it is a requirement that both parents are working.
Tax deductions for moving have been limited. Recent tax code changes have eliminated the deduction for moving expenses. While this means most taxpayers will no longer be able to deduct moving expenses, there are exceptions to the new rule. Give us a call if you have questions about this change.
Business and pleasure can mix – if you follow the rules. If you want your business travel to remain tax deductible, and you are considering adding on a few fun days before or after a business trip, make sure you follow all the rules. A tax deduction may also be available for travel that is primarily for charitable work.
Regardless of your summer plans, this is always a good time for a general tax checkup to ensure your withholdings and estimated tax payments are on point. Contact our office if you need to schedule a midyear tax planning consultation.
Here are a few additional articles you might be interested in:
Work Life Balance. . . Innovative Culture . . . Variety If you are an accountant with 10-15 years of accounting experience and this sounds intriguing, check this out. Work/life balance is a top priority with our team. We provide a family-friendly work environment with...read more
No one starts a business hoping that it will fail, yet a quick check of business statistics shows that half of all businesses will. Large businesses have teams of experts who comb through complex reports to make decisions that affect hundreds of employees and ensure...read more
The five questions you should consider before taking the plunge It’s been your dream for as long as you can remember. Maybe your entrepreneurial juices started to flow when you were a youngster and you opened a lemonade stand or you had a paper route. Perhaps the...read more