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Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

 
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5 Replies

Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

Could you please give me a little more info on your findings?

I read that

"If you are the sole proprietor of your own business, consider employing your child (under the age of 18) for certain tasks. You can pay your child up to $6,300 in wages (the maximum standard deduction for the single person in 2016) without incurring income taxes and most employment taxes." 

That's from https://turbotax.intuit.com/tax-tools/tax-tips/Family/Tax-Exemptions-and-Deductions-for-Families/INF...

If you've read something incorrect, we need to fix it!  Thanks for that!

Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

In Business section:  If you paid anyone wages, including family members, such as your spouse or minor children, to help with your business, select Yes. Click "Learn More" and read "If your child works in your business and makes less than $5,700 a year, he/she doesn't pay income taxes (unless the child has income from investments). ...  If your child makes more than $5,700 a year, he/she pays taxes "

Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

I'm still working on your catch--I'll let you know!

Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

The rate of 5,700 was for 2009/2010.  It wasn't updated in the program, and I am reporting it.  Thanks for the info.  For 2016, you are allowed to pay your child up to $6,300 without it being taxed.

Hiring your kids (tips for Employing Family members) - why do you show that 5700 is limit not to be filed, while standard deduction for single taxpayer in 2016 is 6300?

The software and calculations aren't affected by the error; just the text in the Learn More box was not updated.
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