He's a sole proprietor. All of his income is reported as income, and he pays the payroll tax on net income. There's no "salary" that he can adjust up or down for tax purposes.Is paying oneself illegal? People do this all the time, for example those that need to catch up on their social security points. They file a 1099-se and pay the proper tax. What’s wrong with increasing one’s salary?For the record, discussions of dishonest behavior or bypassing the law is totally unacceptable. Taxes are based on US law. Intentionally filing a tax return that does not match your actual income (misreporting your income) is therefore illegal and is known as tax evasion.
pearlmoon - What did you mean by "report" higher income? Do you mean working more to earn higher income which shows up on the SSA report?
Statistics: Posted by Tom_T — Tue Mar 12, 2024 6:59 am — Replies 7 — Views 765