10 STEPS TO SLASH S-CORP TAXES….
- Reduce S-Corporation Owner’s Wages
As the owner of an S-Corporation, you can legitimately cut payroll taxes by thousands of dollars by paying yourself a lower salary and taking the rest of your income as distributions. But you need to make sure that you don’t drop your salary below what the IRS considers “reasonable compensation.”
- S-Corporation Covers. the Owner’s Health Insurance Premiums The S-Corporation can establish a health insurance plan for the owner-employee who owns more than 2 percent in one of two ways: 1) the S-Corporation pays the premiums for the owner-employee and family, or 2) the S-Corporation reimburses the owner-employee for the premiums.
- Employ Your Child The S-Corporation owner must pay payroll taxes on the child’s wages, but the family enjoys a decrease in income taxes. Each child can earn up to $12,000 without paying any federal income taxes.
- Sell Your…