Dealing With Tax Problems: Easy As Pie
145.00 ₦
Published date: 01/31/2025
- Location: 2483, Nunavut, United Kingdom
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of greenbacks from someone which in a high tax bracket to someone who is in the lower tax segment. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't possess any other taxable income. Normally, the other person is either your spouse or common-law spouse, but it can also be your children. Whenever it is possible to transfer income to a person in a lower tax bracket, it must be done. If the difference between tax rates is 20% the family will save $200 for every $1,000 transferred for the "lower rate" general.
2) A person participating with your company's retirement plan? If not, why not? Every dollar you contribute could reduced taxable income decrease your taxes to shoe.
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