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deduction of childs salary re:deductions

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sionnah

Junior Member
What is the name of your state?
Georgia

I recently read an article "12 often overlooked tax deductions for small business", written by a freelance writer and I wonder about the validity of this paticular deduction...

"If you paid your child up to $4850.00 last year, you've avoided any additional taxes. There is no Social Security tax when you hire your child who is 17 yrs or younger and you CAN deduct the salary as a business expense. This break is available only if you operate as a sole proprietor or as a partnership in which you and your spouse are the only partners"

I've checked (as best I could) the internal revenue code, and cant find any information that substantiates the above statement. Can any one help me seek the truth?

Thanx,
Sionnah
 



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