Tax Credits and Tax Deductions: Discover The Huge Difference! We’ve all heard of tax credits and tax deductions. And we know that tax credits and tax deductions are good things. And that they can save you money come tax time. But have you ever considered how they work? And if there’s a difference between them?…

As long as they’re doing legitimate work for your business, you can hire your child tax-free and pay each of them up to $12,000 per year tax-free. It’s true. And all of this while they earn a little money AND start saving for college or that first business. And it’s all tax-free. So you may…

To get your real property into your trust, you must change the name of the owner on the title document — from your name to the name of the trust. To transfer real estate (also called real property) into your living trust, you must prepare and sign a new deed, transferring ownership. Preparing the Deed…

Can I Claim the EIC? Basic Qualifying Rules To qualify for the EITC, you must: Have worked and earned income under $57,414. Have investment income below $10,000 in the tax year 2021. Have a valid Social Security number by the due date of your 2021 return (including extensions) To claim the EIC, you must meet certain rules. Rules for…

Summary answer—Yes: an LLC may account for regular payments to a member for services and paid ahead of payments to members as distributions of profits as guaranteed payments, essentially a salary substitute. And like a salary, guaranteed payments are deductible by the LLC as business expenses, and represent regular income to the member recipient.We have…