Shifting income from you to other family members who are in a lower tax bracket is a common tax planning opportunity for high-income taxpayers. The family will pay lower taxes on this shifted income and it can give your children an opportunity to start saving for the future. You do need to be careful of the “kiddie tax.” A child under age 14 pays tax at his or her parents’ highest tax rate on the child’s unearned income over $1,700. Here are a few income-shifting strategies that you may want to consider.
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Options For Preparing Your Taxes

When tax season rolls around each year the are a number of individuals who need to decide how their tax returns will be prepared and filed. Each taxpayer has a number of tax preparation options. These tax preparation options can include self preparation or hiring the services of a tax professional.

Individuals who makes the decision to hire the help of a tax professional are likely to hire an accountant or professional tax preparer. The majority of professional tax preparers are employed by a large company that specializes in tax preparation. Taxpayers are often required to take the necessary documents to a tax preparation office. Popular professional tax preparation companies include H&R Block and Jackson Hewitt. There are likely to be other smaller or locally owned tax preparation companies located in cities or towns throughout the United States.

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