I’m your government. I’ll give you $6,614 if you will pay your child $16,100 to work for you. Would you be interested in this proposition?

That’s what the federal and state governments will pay Sara Jackson in 2026 because she will pay her 13-year-old child $16,100 to work in her Schedule C business.

Had Sara operated her business as a corporation, the governments would have taken about $2,500 of that $6,614 in payroll taxes and Sara would have about $4,114.

Going back to the Schedule C business, the $6,614 that Sara will receive comes from the built-in hiring-your-child tax breaks that we discuss in this article. And depending on you and your family, you can generate numbers vastly exceeding $6,614.

Zero Taxes for the Child

First, let’s examine Sara’s child. The child ... Log in to view full article.