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WASHINGTON — As president, Donald Trump slashed a lucrative tax break enjoyed by coastal donors and suburban swing-state voters. What shifted more than the economy is Trump's needs, said Caroline Bruckner, managing director of American University's Kogod Tax Policy Center. The reversal is one of a flurry of freebies that Trump and his rival, Vice President Kamala Harris, are offering voters in the stretch run before Election Day. Trump’s proposal to repeal the SALT cap, which is set to expire next year if Congress takes no action, would reduce federal revenue by $1.2 trillion over a decade, according to CRFB’s estimate. But many voters in those counties would stand to benefit considerably from a repeal of the SALT cap.

Persons: Donald Trump, he's, Trump, ransoming, Caroline Bruckner, Bruckner, Kamala Harris, Peter Zay, Harris, She’s, “, ”, Charlie Dent, ” Dent, ” Donald Trump, Jeff Kowalsky, Marc Goldwein, ” Goldwein, ” Harris, —, Donald Trump won’t, James Singer, Joe Biden’s, I’ve, it’s, Mark Cuban, Jackson, Biden —, Dent Organizations: WASHINGTON, Trump, Getty, Social, Foundation, Social Security, Democratic, CNBC, Tax Foundation, NBC News, Tax Locations: Washington, Anadolu, AFP, South Carolina, Mississippi, Harris, Manhattan, San Francisco, Silicon, Valley , Idaho, Aspen , Colorado, , Wyoming, Westchester County , New York, Fairfield County , Connecticut, Maricopa County, Arizona's, Philadelphia, Wilmington , Delaware, Montgomery, Chester, Delaware, Allegheny County

The third-quarter estimated tax deadline for 2024 is Sept. 16, and skipping a payment could trigger a penalty, according to the IRS. Some filers also need estimated payments if they haven’t withheld enough taxes from a full-time or part-time job. Estimated payments can help avoid “refund disappointment or balance due shock,” said Mark Steber, chief tax information officer of Jackson Hewitt. For 2024, the quarterly estimated tax deadlines are April 15, June 17, Sept. 16 and Jan. 15, 2025. You can use your online account, IRS Direct Pay or the U.S. Department of the Treasury’s Electronic Federal Tax Payment System, or EFTPS.

Persons: ”, Mark Steber, Jackson Hewitt, there’s, Tricia Rosen, Virgin Organizations: Taxpayers, IRS, U.S . Department Locations: Newburyport , Massachusetts, Puerto Rico

☆ IRS: This 'rule of thumb' shows who needs to make a third-quarter estimated tax payment by Monday
▼ + stars: | 2024-09-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The third-quarter estimated tax deadline for 2024 is Monday, Sept. 16, and skipping a payment could trigger a penalty, according to the IRS. Typically, you need estimated payments for any income without tax withholdings, such as earnings from self-employment, contract or gig economy work and investment or retirement income. Some filers also need estimated payments if they haven't withheld enough taxes from a full-time or part-time job. Estimated payments can help avoid "refund disappointment or balance due shock," said Mark Steber, chief tax information officer at Jackson Hewitt. You can find adjusted gross income on line 11 of Form 1040 from your 2023 tax return.

Persons: Mark Steber, Jackson Hewitt, — Organizations: Finance, Security Locations: Washington

☆ Senate debates taxes ahead of Trump’s 2025 expirations. It's a ‘make-or-break moment,' lawmaker says
▼ + stars: | 2024-09-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

With trillions in tax breaks scheduled to expire after 2025, lawmakers are debating policy priorities that could impact millions of families and small businesses. Enacted by former President Donald Trump in 2017, the Tax Cuts and Jobs Act, or TCJA, made sweeping tax changes, including temporary provisions that will sunset after 2025 without action from Congress. Some of the expiring TCJA provisions include lower federal income tax brackets, bigger standard deductions, a more generous child tax credit, higher gift and estate tax exemptions and a 20% tax break for pass-through businesses, among others. "This will be a make-or-break moment for the federal budget and for America's middle class," Senate Finance Committee Chairman Ron Wyden, D-Ore., said in a prepared statement at a Senate hearing on Thursday. In the meantime, lawmakers and organizations are voicing support for certain tax issues before the 2025 deadline.

Persons: Donald Trump, Ron Wyden, — Organizations: Finance, Tax, White House

☆ Harris wants to raise the top capital gains tax rate to 28%. How that compares to recent history
▼ + stars: | 2024-09-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

As the election ramps up, many investors are focused on capital gains taxes and how proposals from both parties could impact their assets. Democratic presidential nominee Vice President Kamala Harris last week proposed a 28% tax on long-term capital gains, or profits from the sale of assets owned for more than one year, for those making more than $1 million annually. Her plan would also raise the net investment income tax, or NIIT, from 3.8% to 5%, The Wall Street Journal reported last week. If Harris proposes raising the NIIT to 5%, the combined rate would be 33% for top earners. Biden's plan would raise the combined rate to 44.6%.

Persons: Kamala Harris, Donald Trump, Sen, Bernie Sanders, NBC's, Harris, filers Harris, Joe Biden's Organizations: Democratic, Sunday, Finance, IRS, Street Locations: Milwaukee , Wisconsin, U.S, Bedminster , New Jersey

Although there are no restrictions on how often you can file for bankruptcy, there are restrictions on how often you can receive a discharge. While Chapter 7 and Chapter 13 bankruptcies will have the same effect on your credit score, creditors may view a Chapter 13 bankruptcy more favorably. A Chapter 7 bankruptcy will stay on your credit report for 10 years, while a Chapter 13 bankruptcy will fall off after seven years. Frequently asked questions about how often you can file for bankruptcyCan I file a Chapter 13 bankruptcy after a Chapter 7 bankruptcy? Yes, you can file Chapter 13 after Chapter 7 bankruptcy, but you must wait at least four years after the discharge of your Chapter 7 to file Chapter 13.

Persons: Filers, you've, Adrienne Hines, Hines, Scott Glatstian, Rosenblum, Lamine Zarrad, —, Jennifer, Read Organizations: refiling, Wright Co, Rosenblum Law, Federal Trade Commission, Business, Yahoo, Finance, CBS, MSNBC, CNBC, Forbes, Black Enterprise, USA, The Johns Hopkins University Carey School of Business, Business Journalists Locations: Kademenos, Chevron, America, TheGrio, New York City

☆ How high earners can funnel money to a Roth IRA, the 'gold standard' of retirement accounts
▼ + stars: | 2024-09-05 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Roth contributions don't get the same upfront tax break: Investors fund Roth IRAs with after-tax money, but generally don't pay income taxes on earnings or withdrawals in retirement. The 'only reason' to save in a nondeductible IRALordhenrivoton | E+ | Getty ImagesHigh earners can contribute to a so-called nondeductible IRA, however. The ability to use the backdoor Roth IRA is a major benefit of these accounts, tax experts said. watch now"The only reason you'd do [a nondeductible IRA] is if the intention was to do a backdoor Roth," Slott said. "All high wage earners should consider looking at both a backdoor Roth IRA and a mega backdoor Roth IRA if they can't set up a Roth IRA," said Ted Jenkin, a certified financial planner and founder of oXYGen Financial, based in Atlanta.

Persons: Thomas Barwick, Roth, Slott, Ted Jenkin, He's Organizations: Investors, Roth IRA, IRA, CNBC, Taxpayers, IRS, Arnold, Mote Wealth Management, Medicare, nondeductible Locations: deductibility, Atlanta, Hiawatha , Iowa

☆ Harris running mate Gov. Tim Walz owns no stocks, bonds or real estate, disclosure shows
▼ + stars: | 2024-08-07 | by ( Dan Mangan | ) www.cnbc.com time to read: +1 min

Tim Walz, the running mate of Democratic presidential candidate Vice President Kamala Harris, speaks during a campaign rally in Eau Claire, Wisconsin, Aug. 7, 2024. Tim Walz, the Democratic running mate of Vice President Kamala Harris, owns no stocks, bonds or real estate, according to his most recent financial disclosure. If Walz is elected vice president in November, he would make an annual salary of $284,600, based on 2024 rates. Walz's modest financial profile stands in stark contrast to that of Republican presidential nominee Donald Trump, who is a billionaire several times over, and to Trump's running mate, Sen. JD Vance of Ohio. Forbes estimates Vance's net worth, based on publicly reported investments and cash, to be between $3 million and $10 million.

Persons: Tim Walz, Kamala Harris, Walz, Donald Trump, Sen, JD Vance, Ohio, Harris, Doug Emhoff, Emhoff Organizations: Minnesota Gov, Democratic, Republican, Forbes Locations: Minnesota, Eau Claire , Wisconsin, Mankato , Minnesota, Brentwood , California

☆ Here are 3 smart crypto tax moves to consider — whether prices go up or down
▼ + stars: | 2024-07-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Weigh 'tax gain harvesting'Despite recent dips, many long-time crypto investors could have significant gains. Long-term capital gains rates apply to assets owned for more than one year. Of course, you'll need to weigh the tax consequences of boosting your adjusted gross income with crypto gains, which can impact other tax breaks. Consider the crypto wash sale 'loophole'If you're sitting on crypto losses, you could consider tax-loss harvesting, which allows you to offset other investing profits. Although tax-loss harvesting often happens at year-end, it's better to harvest crypto losses over time because "those losses may no longer exist" by year-end, Gordon explained.

Persons: bitcoin, Andrew Gordon, Adam Markowitz, Gordon Organizations: Getty, Gordon Law Group, Luminary, IRS Locations: Windermere , Florida

Your adjusted gross income, or AGI, is your total income minus specific deductions. Adjusted gross income FAQsHow do I determine my adjusted gross income (AGI)? What's the difference between gross income and adjusted gross income? Adjusted gross income is your gross income minus certain deductions and adjustments that you qualify for. Gross income is the total income from a company that includes all revenue and sources of income.

Persons: It's, MAGI Organizations: IRS Locations: Chevron

☆ Here's what a Kamala Harris administration could mean for your wallet
▼ + stars: | 2024-07-22 | by ( Cnbc.Com Personal Finance Staff | ) www.cnbc.com time to read: +8 min

Harris' visit, following the attempted assassination of former President Trump, makes this her fourth trip to Michigan this year and seventh visit since taking office. However, Harris voiced some distinctions from Biden before becoming vice president, Watson noted. The vice president plans to bring more relief to borrowers, they said. Harris proposed repealing the Trump tax cuts to pay for it. — Jessica DicklerHousingHarris has been a proponent for affordable housing policies both during her tenure as vice president and as senator.

Persons: Kamala Harris, Trump, Olivia Troye, Amanda Stratton, Harris, Chris duMond, Chris Dumond, Biden, Garrett Watson, Watson, — Kate Dore, Drew Altman, Altman, She'd, Fatima Goss Graves, Roe, Wade —, Greg Iacurci, Pell Grant, Joe Biden, Miguel Cardona, Annie, Laura Veldkamp, Veldkamp, — Jessica Dickler, May, — Ana Teresa Solá Organizations: Getty, Tax, Tax Foundation, Biden, — Kate Dore Health, Affordable, Medicaid, National Women's Law, CNBC, Current U.S . Department of Education, Corinthian Colleges, U.S . Department, Corinthian, Columbia University Business School, U.S . Department of Housing, Urban Locations: KALAMAZOO , MICHIGAN, Kalamazoo , Michigan, Michigan, North Carolina, California, U.S

☆ Most developed countries are set to gain more millionaires in the next 5 years — with 2 big outliers
▼ + stars: | 2024-07-17 | by ( Lian Kit Wee | ) www.businessinsider.com time to read: +4 min

Read previewMost developed countries are set to gain more wealthy people in the next five years — with two big outliers. Some countries, like Taiwan, will gain as many as 50% more millionaires during that time. But the United Kingdom and the Netherlands make "notable exceptions" on this list, per UBS, because both are forecasted to lose millionaires. The UK's three million millionaires put it third among countries with the highest number of millionaires last year, as measured in US dollars, per UBS. The loss continues a trend: The UK lost 16,500 millionaires between 2017 and 2023, per immigration consultancy Henley & Partners.

Persons: —, Paul Donovan, Donovan, Andrew Amoils, Amoils Organizations: Service, UBS, Business, UBS Global Wealth Management, Henley & Partners, Russia, BI, Henley, Partners Locations: Taiwan, United Kingdom, Netherlands, Paris, Dubai, Sydney, Italy, Spain, Europe

☆ The end of this tax break could be 'very disruptive' to business owners, expert says — what to know
▼ + stars: | 2024-07-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Tax breaks worth trillions of dollars are scheduled to expire after 2025 without extension from Congress — including a hefty deduction for millions of self-employed filers and business owners. The temporary deduction applies to so-called pass-through businesses, which report income at the individual level, such as sole proprietors, partnerships and S-corporations, along with some trusts and estates. Some already regret the decisionLawmakers added the temporary QBI deduction to the Tax Cuts and Jobs Act to create tax rates for pass-through businesses that are similar to tax rates for corporations. But while the QBI deduction will sunset after 2025, the legislation permanently reduced corporate taxes by dropping the top federal rate from 35% to 21%. For tax year 2021, the most recent data available, there were roughly 25.9 million QBI claims, up from 18.7 million in 2018, the first year the tax break was available, according to the IRS.

Persons: Donald Trump, Dan Ryan, Sullivan, Gen Zers, Howard Gleckman Organizations: Finance, Urban, Brookings Tax, Center Locations: Worcester

☆ Trump and Biden's first presidential debate: Here's what to expect on taxes
▼ + stars: | 2024-06-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

President Joe Biden and former President Donald Trump will face off Thursday in the first presidential debate of the 2024 general election — and the presumptive nominees could show voters where they stand on tax policy, experts say. One key issue is the Republicans' expiring tax breaks enacted via the Tax Cuts and Jobs Act of 2017, or TCJA. Without action from Congress, several provisions will sunset after 2025, including lower federal income tax brackets, a boosted child tax credit and higher estate and gift tax exemptions, among others. More than 60% of tax filers could face increased taxes in 2026 if TCJA provisions expire, according to the Tax Foundation. Fully extending TCJA provisions could add an estimated $4.6 trillion to the deficit over the next decade, the Congressional Budget Office reported in May.

Persons: Joe Biden, Donald Trump, —, Andrew Lautz, Trump, expirations Organizations: Tax Foundation, Biden, Finance, IRS, Congressional

☆ Trump tax breaks are set to expire after 2025. Here's what advisors are telling their clients
▼ + stars: | 2024-06-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

With trillions of dollars in tax breaks scheduled to expire after 2025, financial advisors are working with clients to prepare for the looming tax cliff. Enacted by former President Donald Trump, the Tax Cuts and Jobs Act of 2017, or TCJA, included lower federal income tax brackets, bigger standard deductions and higher gift and estate tax exemptions, among other provisions. If Congress doesn't take action, those tax breaks will sunset after 2025. And if the TCJA provisions expire, more than 60% of tax filers could face increased taxes, according to the Tax Foundation. Here are some tax strategies advisors are discussing with their clients.

Persons: Donald Trump, Jim Guarino, Baker Newman Noyes, Mary, Guarino Organizations: Tax, Finance Locations: Woburn , Massachusetts

☆ First a Victim of Tax Return Identity Theft, Then a 2-Year Wait for a Refund
▼ + stars: | 2024-06-14 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Federal income tax refunds usually appear in bank accounts less than three weeks after the government accepts a return — unless you’re the victim of tax return identity theft. In that case, it often takes about two years. “That period of time is just ridiculous,” Erin M. Collins, who leads the service, said in an interview. For reasons not yet clear, Ms. Collins noted, many of those affected are lower-income tax filers, who often depend on tax refunds to cover basic living costs. Those filers often qualify for tax breaks for working families, like the earned-income tax credit, that can result in significant refunds.

Persons: Erin M, Collins Organizations: Taxpayer Advocate Service, Internal Revenue Service

☆ Biden economic advisor unveils 'key principles' for tax policy plan ahead of expiring Trump tax cuts
▼ + stars: | 2024-06-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Director of the National Economic Council Lael Brainard speaks at the White House in Washington, D.C., on Jan. 11, 2024. President Joe Biden's top economic advisor on Thursday unveiled plans to address trillions of dollars in expiring tax breaks enacted by former President Donald Trump. Some expiring individual provisions include lower federal income tax brackets, a higher standard deduction, a more generous child tax credit and doubled estate and gift tax exemption, among others. Expiring TCJA provisions could affect all Americans, but Brainard reaffirmed Biden's pledge to extend tax breaks only for those making less than $400,000. By comparison, former President Donald Trump has said he plans to extend all expiring TCJA provisions.

Persons: Lael Brainard, Joe Biden's, Donald Trump, Biden, Brainard, Biden's Organizations: National Economic, White, Washington , D.C, Tax, Finance, Fed Locations: Washington ,

☆ Biden and Trump both want to extend tax cuts for most Americans — but paying for it could be tricky
▼ + stars: | 2024-06-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Presumptive nominees President Joe Biden and former President Donald Trump have both pledged to extend expiring tax breaks for most Americans — but questions remain on how to pay for it. Trillions in tax breaks enacted by Trump via the Tax Cuts and Jobs Act of 2017, or TCJA, will expire after 2025 without action from Congress. Expiring individual provisions include lower federal income brackets, higher standard deductions, a more generous child tax credit and more. But the federal budget deficit will be a "huge sticking point" as the 2025 tax cliff approaches, said Erica York, senior economist and research manager with the Tax Foundation's Center for Federal Tax Policy. The cost of extending major parts of the TCJA has grown about 50% since initial estimates in 2018, according to the Committee for a Responsible Federal Budget.

Persons: Joe Biden, Donald Trump, Erica York Organizations: Trump, Tax, Center, Federal Tax, Finance, Congressional, Budget

☆ Biden vs. Trump: Here's what the next president means for your taxes
▼ + stars: | 2024-06-08 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Howard Gleckman Senior fellow at the Urban-Brookings Tax Policy CenterOf course, future legislative updates, if any, will depend on which party controls Congress. More generous child tax creditAnother expiring TCJA provision is the bigger child tax credit, which some lawmakers have fought to expand in 2024. The TCJA doubled the maximum child tax credit to $2,000, boosted the refundable portion to $1,400 and expanded eligibility. Biden has called for an expansion, but there have been debates in Congress over the child tax credit design, including the amount, eligibility and refundability, said Gleckman. Fully extending the TCJA tax breaks could add an estimated $4.6 trillion to the deficit over the next decade, according to the Congressional Budget Office.

Persons: Joe Biden, Donald Trump, Chip Somodevilla, Alex Wong, Howard Gleckman, Garrett Watson, Biden, Trump, Gleckman, Watson, Lael Brainard Organizations: Urban, Brookings Tax, Tax, Center, Congressional Locations: Lower, China

☆ These tax strategies can be a 'silver lining' after a prolonged job layoff, advisor says
▼ + stars: | 2024-06-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

"It's not a free lunch" because you'll still owe regular income taxes on the converted balance, she said. Converting funds to a Roth IRA "can be a great opportunity for tax-free growth and future tax-free distributions," Franco‑Cicero said. Leverage the 0% capital gains bracketIf your income is low enough, you could leverage the 0% long-term capital gains tax bracket to rebalance a taxable portfolio or save on future taxes, experts say. For 2024, you may qualify for the 0% long-term capital gains rate with taxable income of $47,025 or less for single filers and $94,050 or less for married couples filing jointly. That's because the bracket is based on taxable income, which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Persons: Alvaro Gonzalez, Roth, CFP Catalina Franco ‑ Cicero, Tobias, you'll, Franco ‑ Cicero, Quinones Organizations: CFP Catalina Locations: Plantation , Florida

☆ With Big Tech’s runaway 2024, it just might be time to part with a few winners. Here's why
▼ + stars: | 2024-06-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Those highly appreciated positions can change the risk profile of your portfolio, particularly if it's been a long time since you last rebalanced. Managing the tax hit Trimming heavily appreciated positions in a portfolio that's held in a taxable account may come with a capital gains hit. One potential way to mitigate the tax is to use realized losses to offset those capital gains. In a year when losses exceed capital gains, investors can apply up to $3,000 of those losses to offset ordinary income and then carry over the remainder. Normally, these holdings would be the ones subject to the heftiest capital gains taxes if they were sold.

Persons: Blair duQuesnay, it's, Morningstar, Amy Arnott, Arnott, Roger Aliaga, Diaz, We've, Aliaga, Russell Organizations: Nvidia, Ritholtz Wealth Management, CNBC's, Vanguard, Investors, Federal Reserve, Bond Market, SEC, Aggregate Bond, U.S, Taxpayers Locations: New Orleans

☆ More Americans will be able to file their taxes for free through the IRS next year
▼ + stars: | 2024-05-31 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

"The Treasury Department and IRS look forward to working with states to expand Direct File for Americans across the country," Treasury Secretary Janet Yellen said in a statement. More than 140,000 taxpayers used the free filing option, the IRS reports, exceeding the agency's expectations for the pilot program. Beyond increasing access to the Direct File program to all states, the IRS is working on other ways to broaden eligibility. The IRS also announced it would extend its Free File program through 2029. "Free File was part of a successful filing season at the IRS that saw increased interest in a range of free programs to help taxpayers."

Persons: Janet Yellen, Danny Werfel Organizations: Internal Revenue Service, . Treasury, Washington D.C, Treasury Department, IRS, Treasury, Biden, CNBC Locations: Washington, filers

☆ Mega backdoor Roth conversions can be a 'no brainer' for higher earners, expert says
▼ + stars: | 2024-05-31 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're a higher earner and looking to boost tax-free retirement savings, there's a lesser-known strategy that could be worth considering. While Roth individual retirement accounts offer tax-free growth and other benefits, some investors earn too much for direct contributions. For 2024, the adjusted gross income limits for Roth IRA contributions are $161,000 for single filers or $240,000 for married couples filing jointly. However, so-called mega backdoor Roth conversions — which shift after-tax 401(k) contributions to a Roth account — can sidestep Roth IRA income limits for contributions. It's a "no-brainer" after maximizing other tax-advantaged options, assuming you don't need the cash for other goals, said certified financial planner Brian Schmehil, managing director of wealth management at The Mather Group in Chicago.

Persons: Roth, sidestep Roth, It's, Brian Schmehil, Schmehil Organizations: The Mather, Finance Locations: Chicago

☆ The IRS says its direct file program saved Americans $5.6 million in filing fees. Now they're making it permanent.
▼ + stars: | 2024-05-30 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

And so, after a successful pilot run, the tax agency has announced that it's making its new free direct file program permanent. The Direct File program first launched in twelve states for the 2023 filing season following a successful pilot. "Since the direct file pilot was completed in April, we have heard directly from hundreds of organizations across the country, more than a hundred members of Congress, from individual direct file users, and those that are interested in using direct file," Werfel said. The new Direct File program has encountered some pushback from paid tax services. Did you use Direct File and save time or money?

Persons: —, It's, haven't, Janet Yellen, Danny Werfel, Aaron Mok —, Werfel, Rick Heineman, Heineman, filers, Natalie Quillian, Biden's Organizations: Service, IRS, Business, Treasury Department, Intuit TurboTax, Treasury, House Locations: Yellen

☆ You could score a tax break for hiring your own kids this summer — if you follow the rules
▼ + stars: | 2024-05-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

"If your child's income falls within the limits, they may not owe any income tax, which can be a win-win," said Lovison, who is also a certified public accountant. If your child's income falls within the limits, they may not owe any income tax, which can be a win-win. What to know before hiring your kidsBefore hiring your children, it's important to know state and federal labor laws, along with tax rules, experts say. "Some states pretty much ban you from hiring children under the age of 14 under any scenario," Lovison said. Payments to children are subject to income tax withholding regardless of the child's age, according to the IRS.

Persons: Sean Lovison, Lovison, Roth, Carol Fabbri Organizations: Social, Advisors, IRS Locations: Philadelphia, , Colorado

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