An Update on Summer Tax Tips
By : Alyse.firstname.lastname@example.org -
Two summers ago we shared with you a few summer tax tips that you can take advantage of. This month we wanted to just take a moment to recap on those tax-free benefits and hope you have been taking advantage of them this summer!
Now is the time to clean out your house and get rid of those items you have been hanging on to for no reason! And what better way to get rid of them than by making a little cash with a yard sale. As we said last year, and this still holds true, since the items tend to sell for much less than what you paid for them, the transaction is tax-free, that is as long as you only have a yard sale a few times a year, and not regularly. If you have regular yard sales, then you need to pay taxes on the income that you make.
Hiring Your Children:
Did you know that by hiring your kid for the some you can take advantage of some payroll tax benefits? If you said no, then you missed what we had to share last summer, but we’ll share it again with you! Here’s how: if your child is under the age of 18, you are not required to withhold social security and Medicare taxes from their pay. You also don’t need to pay federal unemployment taxes on their wages until they are 21.
However, is your business a corporation? If so, then your child is considered an employee under the corporation and is subject to the normal payroll taxes, regardless of their age.
Renting Out Your Home:
If your home is located in a popular tourist area, a simple way to make some tax-free cash this summer, is by renting it out for a few days. However, to qualify for this benefit, you must live in your residence for more than 15 days in a year and only rent it out for 14 days or less in a calendar year. If you rent it out for longer, then you must claim the money as income on your taxes.
If you have questions about these summer tax tips, please don’t hesitate to call me at 610-775-9216.
A Mazzo Accounting provides a variety of tax and accounting services to individuals and businesses in the Wyomissing, Reading, West Reading, Sinking Spring and Kenhorst areas, as well as towns and villages around the Greater Reading area. Our services for small to mid-size businesses include taxes, payroll services, accounting services, and bookkeeping services. We also provide a variety of services for individuals and they include tax return preparation as well as some accounting assistance.