Difference between revisions of "Paying Taxes Can Tax The Better Of Us"

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Latest revision as of 08:21, 11 May 2026


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S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone who is in a high tax bracket to someone who is in a lower tax segment. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have other taxable income. Normally, the other individual is either your spouse or common-law spouse, but it could even be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it should be done. If the difference between tax rates is 20% your own family will save $200 for every $1,000 transferred to the "lower rate" general.

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If you add a C-Corporation to your business structure you can help to your taxable income and therefore be qualified for a few of those deductions where your current income is simply high. Remember, a C-Corporation is their own individual tax payer.

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The increased foreign earned income exclusion, increased income tax bracket income levels, and continuation of Bush era lower tax rates are excellent news for all American expats. Tax rules for expats are specialized. Get the specialist help you need to file your return correctly and minimize your U.S. tax.

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