I've been reading articles about people getting negative taxes, and am curious about how much someone can actually earn and still pay 0 or negative taxes.
Suppose I have an LLC, and my wife and I are paid as employees.
I plan on having the LLC maximize employer contribution to both our 401ks, which I believe should be 25% of our employee income? And also maximize both of our 401ks through employee contributions. ($19000 each)
Assuming California state taxes at the 2019 rate.
Standard deduction for filing jointly. ($24000)
If possible, use the Savers credit, EITC (refundable), and child tax credit for 1 child (refundable).
I have 2 questions. First, what is the maximum my LLC can earn and so that I can pay exactly 0 taxes?
Second question: What is the maximum negative taxes I can owe after the refundable tax credits?
I'm new to this, but by my numbers, I can earn roughly $100k in my LLC, and still pay roughly negative $4k taxes? Does that sound about right? It seems too good to be true.