@SoCal-Guy-in-CA wrote:
In the past I located a site that mentioned wages to family members was an expense excluded from the SSA earnings test (even though legitimate for calculating taxable income).
I have been trying to locate that site for the last two days because I never bookmarked it. I wouldn't call it a secret formula, but it's not advertised. I recall the article from from an CPA, but I cannot locate it again.
I think I know where you got confused ... payments to YOUR children under the age of 18 are not subject to FICA taxes but the wages are subject to fed/state taxes and are deductible on the Sch C if you file the correct payroll tax reports timely.
Now by using this legal option to reduce the Sch C profit the earned income for your SS early payment reduction is automatically reduced.
