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Underutilized “Hire Your Kid” Tax Benefit Can Help Save Small Business Owners on Taxes This Year

FOR IMMEDIATE RELEASE: March 2, 2023
CONTACT: Kristofer Eisenla, LUNA+EISENLA
kristofer@lunaeisenla.com | 202-670-5747 (mobile)

Pay Attention to IRS’s Recent Recommendations on State Special Refunds and other Important Tax Benefits Often Overlooked, Including Moving Expenses, Child Care and Others

DALLAS, TX – As the American public – including our nation’s smallest business community – prepare to file their annual tax returns due on April 18^th, Keith Hall, president and CEO of the National Association for the Self-Employed (NASE), the nation's leading advocate and resource for the self-employed and micro-businesses, encouraged filers to be aware of the recent IRS recommendations about the impact of 2022 state special refunds and take advantage of all available deductions on this year’s returns.

“As our nation’s smallest business community prepares their annual tax filings, one often overlooked and underutilized deduction is the ‘hire your kid’ benefit,” said Keith Hall, president and CEO of the National Association for the Self-Employed (NASE), the nation's leading advocate and resource for the self-employed and micro-businesses. “Small business owners who hired their kid to work in their business, giving them valuable work experience and extra spending money, are eligible for tax savings.  When filing a Schedule C return this filing season, children can earn up to $12,000 per year in wages and incur absolutely no tax on the income.  By creating a job for kids under 18 years of age, you have now converted $12,000 of personal non-deductible expenses into fully deductible business expenses. Don’t overlook this little-known tax benefit that could result in more money in your pocket, while teaching your children about the value of hard work.”

Check Out NASE’s Online Resource for More Details About the Hire Your Kid Benefit

“Additionally, all Americans should pay particular attention to the IRS’s recent recommendations regarding the receipt of a state special refund last year and the impact it could have on tax filings this year,” continued Hall who was quoted by AP: “In some states, people would get taxed if they received a tax refund in 2022 only if they itemize their deductions… following the IRS recommendations is key if taxpayers want to avoid having to amend a previously filed tax return,” suggesting some may want to delay their federal filings until more clear guidance.

“For all of those filing in the individual rate bracket can also benefit from increased standard and joint deductions, state-based taxes paid last year, and various limits on retirement contributions,” continued Hall.   “Other often overlooked tax benefits include the Earned Income Tax Credit (EITC), out of pocket charitable contributions, state-based taxes you paid last year, child and dependent care credit, and moving expenses. And for business use of your automobile, you can deduct 58.5 cents per mile through June 31, and 62.5 cents through the end of 2022,” continued Hall.

5-POINT TAX RETURN FILING CHECKLIST
➡️ Gather and organize all of your tax return filing documents.
➡️ Educate yourself about key updates and changes to the tax code.
➡️ Review overlooked and hidden deductions available to you.
➡️ Ensure your tax information is accurate and mistake-free.
➡️ File as early as possible – or apply for a six-month extension if you need more time.

Click here to review key updates, changes and reminders for this year’s tax season.

“There are a host of other benefits, educate yourself and don’t leave anything on the table. Remember, you are not alone and there are resources out there for help, including NASE.org, IRS.gov and SBA.gov, where information and assistance is readily available,” concluded Hall.

To Speak with Keith Hall, a Certified Public Accountant and Small Business Expert, about this year’s tax season, please contact Kristofer Eisenla at kristofer@lunaeisenla.com

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The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

The NASE NextBizThing helps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’s Ask the Experts for advice or the NASE Minute for small business support.

The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org