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Tag Archives: income shifting

College Education Funding Using Income Shifting strategies [2]

Thursday, January 15, 2009

Continued from [1] If you are shifting earned income (by paying your child to work for you), he or she can earn up to $3000, pay no tax on that amount, and still be claimed as a dependent on your return. But, as I explained before, the problem is that on financial aid forms parents’ [...]

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College Education Funding Using Income Shifting strategies [1]

Monday, January 12, 2009

One of the most commonly used income tax strategies is to shift income from your higher tax bracket to your child’s lower tax bracket. You can do this with unearned (investment) or earned (job) income, and the rules differ depending both on the type of income and your child’s age. The advantage is that this [...]

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