If you own your own business and operate as a proprietorship or partnership (wherein your spouse is not a partner), one of the smartest tax moves you can make is hiring your spouse to work as your employee.
2020 Last-Minute Year-End General Business Income Tax Deductions
Your goal should be to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.
Don’t Let the IRS Set Your S Corporation Salary
You likely formed an S corporation to save on self-employment taxes
Create Deductions: Use Your Vacation Home for Business Lodging
Do you use your business vacation home or condo solely for business lodging? If so, you escape the vacation-home rules and may deduct your business-lodging costs.
Qualified Small Employer Health Reimbursement Arrangements: What to look for and how to protect yourself
Employers can reimburse employees for legitimate out-of-pocket medical expenses and report these reimbursed medical expenses as a business deduction.
Choosing the right retirement plan: Ask yourself three simple questions
Entrepreneurs who want to set up a retirement plan for their business have three options: SIMPLE IRA, SEP IRA, and solo 401(k) plans.
Working in the gig economy: Tax tips for ride-sharing drivers
Gig economy companies report income paid to you on a Form 1099. Some companies will send you Form 1099-MISC, while others will send you a Form 1099-K. The important thing is to keep copies of any tax documents and all the income you earn. Also track your out-of-pocket expenses.
Tax-free reimbursements of business expenses: Accountable plan basics
Businesses can reimburse owners and employees for out-of-pocket expenses under an accountable plan, a set of rules and processes that allow tax-free reimbursements of certain business expenses. The best time to set up an accountable plan is now.
Hiring family members: Tax-saving strategies
Sole proprietors may be able to reduce their tax burden by hiring their children, spouse, or parents to work as bona fide employees.
Reasonable compensation: Is your S corp paying you enough?
Entrepreneurs often struggle with the question of how much to pay themselves. The underlying rule is that individuals who own and operate their business through an S corp need to pay themselves a “reasonable” salary. This rule also applies to any family members hired to help with the business, such as a spouse, parent, child, and even your grandchildren.