Guess what !? 2023’s about to wave goodbye, and with it, a bunch of tax deadlines. But before we say hello to 2024, we’ll uncover 5 strategies to help you keep more of your hard-earned cash. Think of it as your personal training guide for getting ahead in 2024!
Optimize Your Payroll with Your Kids
If you’re a Schedule C sole proprietor or part of a spousal partnership and have a child under 18, consider putting them on your payroll. Here’s the scoop:
- No payroll taxes for you or your child on their income.
- A child with a traditional IRA can avoid federal income taxes on up to $20,350 of earned income.
- Even if you operate as a corporation, employing your child can still be advantageous despite your corporation and child incurring payroll taxes.
- Ready to make the most of these benefits? Take action now and book a tax assessment to explore the potential savings!
Get Divorced after December 31
Here’s a marriage rule: if you’re married on December 31, you’re considered married for the entire year. Despite ongoing changes in tax laws, filing a joint return proves advantageous.
Quick heads up on alimony! The Tax Cuts and Jobs Act (TCJA) has altered the tax treatment of alimony payments for agreements executed after December 31, 2018. The payor no longer enjoys a tax deduction, and the recipient doesn’t need to recognize it as income.
Stay tuned for tomorrow’s email, where we’ll reveal the rest of the strategies to impact your financial game in 2024.