tax_qa[at]yahoo.com wrote:

- quote -

There is no "standard" amount that can be deducted for
child's pay by any employer. The amount deductible is the
amount of compensation paid. If the child is a related party
to the employer, then the compensation paid must be
reasonable for the services provided by the child.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

<tax_qa[at]yahoo.com> wrote:

- quote -

Corporations, even S corporations, can't have kids.

Gene E. Utterback, EA, RFC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

If you are a self-employer, the standard deduction for 2005
is $5,000 for child's pay. Does this rule apply to one
person S corporation? What is the standard deduction for S
Corp. to hire kids?

Thank you.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >