Written by Reed Tinsley |
November 29, 2007
Employing a child has always been sound tax planning, but you've got to jump through the hoops to do it. The child obviously has to actually do some work and is certainly capable of doing the work. The child is usually paid some nominal amount, which gives him or her earned income. This in turn allows the child to participate in a Roth IRA plus there is some income tax savings by shifting some income to the child, which is can be eliminated or reduced by the standard deduction. Consider talking to your tax advisor about this tax saving idea.
About the Author
Reed Tinsley CPA
This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on
accounting & tax,
practice management, and
financial planning.
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