Recent Posts




Arranging Child Care - Tax Breaks

Having dependent children is rewarding, but often costly. Among the many expenses new parents incur is child care. The federal government has enacted a tax credit designed to help child care more affordable for families. Child and dependent care credit. You are eligible for a nonrefundable child and dependent care tax credit if you currently pay someone to watch your under-age-13 dependent child or children so that you can be gainfully employed. In order to claim the credit, the child must live with you for more than half the year. The credit amount is equal to the amount of qualified child care expenses multiplied by an applicable percentage determined by your adjusted gross income (AGI). T

Self-Employment Tax for Businesses Abroad

The self-employment tax is a social security and Medicare tax which must be paid if your net earnings from self-employment are at least $400 for the tax year. For 2017, the maximum amount of your net earnings from self-employment that are subject to the social security portion of the tax is $127,200. All of your net earnings are subject to the Medicare portion of the tax. As you may know, if you are a self-employed citizen or resident, the rules for paying self-employment tax are generally the same whether you are living in the United States or abroad. Nonresident Aliens. Nonresident aliens are not subject to self-employment tax. However, self-employment income you receive while you are a re