View Single Post
Old 08-15-2018, 07:51 PM
TomCopeland's Avatar
TomCopeland TomCopeland is online now
Business Author/Trainer
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,030
Default withholding

Originally Posted by hwichlaz View Post
Does this mean I can pay my son more on his w-2 without withholding this year? Since the standard deduction is higher....
The standard deduction for a single person this year is $12,000. So, if you paid your son less than this, he won't owe income taxes on it. If he is under age 18 you won't owe any Social Security/Medicare taxes. However, you must be able to justify what you pay your son. It can't be "unreasonable compensation" for the work he does.
Reply With Quote