Article Date:
September 2017


Word Count:
2686

 

 

Get Paid: Hire Your Child


 

Editor’s Note: TCJA tax reform increased the standard deductions which enhances this strategy. Click here for how.

 

I’ll give you $3,003 if you will pay your child $6,350 to work for you. Would you be interested in this proposition?

 

That’s what federal and state governments paid Sara Jackson when she paid her 13-year-old child $6,350 to work in her Schedule C business.

 

Had Sara operated her business as a corporation, state and local governments would have paid her corporation $1,650.

 

The $3,003 that Sara received and the $1,650 that the corporation would have received came 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 the $3,003 and $1,650.

 

Zero Taxes for the Child

 

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

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