In A Little-Known Way to Pay Family and Save on Taxes, you learned that you could pay your child, your grandchild, your mom, or some non-related person for a one-time job that was not subject to self-employment taxes.

Using this example strategy, you paid your 20-year-old college student $23,255 and deducted the full amount. That deduction reduced your taxes by $8,593, and your student owed only $713 in taxes on the income. Overall, your family saved $7,880 in taxes, and your ... Log in to view full article.