Why It Matters
With more clients havig the need to hire in-home help to assist with children and parents, I thought I would outline some of the rules on Household Employees — Nanny Tax - from the IRS's view. As always, after reading this article, do not hesitate to call and disucss your particular situation.
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Vehicles - Methods of Business Treatment
There are several acceptable methods for the deduction of vehicles. Here is a quick look at a the most acceptable methods.
| Tax Rates for a Child's Investment Income |
Part or all of a child's investment income may be taxed at the parent's rate rather than the child's rate. Because a parent's taxable income is usually higher than a child's income, the parent's top tax rate will often be higher as well. This special method of figuring the federal income tax, “kiddie tax” only applies to children who are under the age of 18. For 2007, it applies if the child's total investment income for the year was more than $1,700. Investment income includes interest, dividends, capital gains, and other unearned income. |
