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#2
11-14-2003, 03:01 PM
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 Re: Wages paid to your minor child. (Exemption of Soc. Sec. taxes ) taxman99[at]aol.com (BigAl) wrote: - quote - > I've read in several newsletters over the years that wages
See Pub 15, under "Family Employees"> paid to your minor children that are living with you are > exempt from social security taxes if below a certain amount. > I don't remember the amount but around $2,000 sounds right. > What the newsletters always leave out are the details. Do > you treat your children just like any other employee, that > is do you include them on your quarterly reports? W-2's at > the end of the year. Pay them with checks? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
11-14-2003, 02:23 PM
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| Re: Wages paid to your minor child. (Exemption of Soc. Sec. taxes ) taxman99[at]aol.com (BigAl) writes: - quote - > Do you treat your children just like any other employee, that
I can't remember whether you report total wages on the 941> is do you include them on your quarterly reports? or not, but do what the instructions tell you to. - quote - > W-2's at the end of the year.
Yes.- quote - > Pay them with checks?
Why not?Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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11-14-2003, 02:23 PM
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| Re: Wages paid to your minor child. (Exemption of Soc. Sec. taxes ) taxman99[at]aol.com (BigAl) writes: - quote - > I've read in several newsletters over the years that wages
Properly, YES!! There is a box on your Form 941 which shows> paid to your minor children that are living with you are > exempt from social security taxes if below a certain amount. > I don't remember the amount but around $2,000 sounds right. > What the newsletters always leave out are the details. Do > you treat your children just like any other employee, that > is do you include them on your quarterly reports? W-2's at > the end of the year. Pay them with checks? wages exempt from Social Security & Medicare Tax. Having said that, I am aware of cases where the deduction was taken and, under audit, was found acceptable even though W-2's were not issued. As long as you can support your claim, checks shouldn't be necessary. However, if that's the way you pay your other employees, it's likely I'd recommend that's the way to go. The wages may go as high as whatever is the child's standard deduction if the child's income is from wages only. The standard deduction of an individual who can be claimed as a dependent on another person's tax return is the greater of: $750, or The individual's earned income plus $250 up to the basic standard deduction for his or her filing status. Assuming your child/ren is/are not blind, their basic standard deduction for 2003 is $4750. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!=  << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
11-13-2003, 07:30 PM
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| Wages paid to your minor child. (Exemption of Soc. Sec. taxes ) I've read in several newsletters over the years that wages paid to your minor children that are living with you are exempt from social security taxes if below a certain amount. I don't remember the amount but around $2,000 sounds right. What the newsletters always leave out are the details. Do you treat your children just like any other employee, that is do you include them on your quarterly reports? W-2's at the end of the year. Pay them with checks? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| child, exemption, minor, paid, sec, soc, taxes, wages |
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