Hire kids


T

tax_qa

If you are a self-employer, the standard deduction for 2005
is $5,000 for child's pay. Does this rule apply to one
person S corporation? What is the standard deduction for S
Corp. to hire kids?

Thank you.
 
Last edited by a moderator:
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G

Gene E. Utterback, EA

If you are a self-employer, the standard deduction for 2005
is $5,000 for child's pay. Does this rule apply to one
person S corporation? What is the standard deduction for S
Corp. to hire kids?
Corporations, even S corporations, can't have kids.

Gene E. Utterback, EA, RFC
 
Last edited by a moderator:
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B

Bill Brown

If you are a self-employer, the standard deduction for 2005
is $5,000 for child's pay. Does this rule apply to one
person S corporation? What is the standard deduction for S
Corp. to hire kids?
There is no "standard" amount that can be deducted for
child's pay by any employer. The amount deductible is the
amount of compensation paid. If the child is a related party
to the employer, then the compensation paid must be
reasonable for the services provided by the child.
 
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