Success By Six

Providing Good Information to Help All Children Succeed for Life

Dominican Children in New York City Schools Face Two-Edged Sword of Difficulties

Residents of the Dominican Republic, especially the impoverished ones, have long viewed the United States and especially New York City as a land of limitless wealth. All you have to do is live there for a few years, and you too will be wealthy.

This erroneous vision was fostered in the 1980s with the crack epidemic centered in Washington Heights, an area located north of New York City and predominantly populated by Dominican immigrants. Thousands of dollars in cash were sent back to the families, who still lived in the Dominican Republic.

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Employ Your Children

Hire your kids instead of paying them an allowance!

It is quite common to see children actively involved in the family business. Even young children can perform valuable services. Many business owners, however, miss out on the major tax savings generated by actually hiring their children and paying them a fair wage for their services.

The expense is tax-deductible to you, and the income is tax-free to them. [Reg Sec 1.162-7(a) ] The tax-free limit for dependent children was $5,350 per child per year for 2007, and it tends to be increased somewhat each year. The amount is equal to the Standard Deduction.

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