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One benefit of hiring your kids in your business:

If you have a business and might want to hire your kids, please read on...

Hiring your kids is a great way to save taxes for your family. That's because your business can pay each of your children up to $12,400 annually and it's income tax free to each of the kids. And, it's a tax deduction for you!

Several different rules govern this, but the short story is that your kid needs to be hired to do a real job in your business. Even if that's simple office work like filing or mailing, or maintaining your website. Main point is that it has to be a real job.

Second is that the wage paid has to be reasonable. If your kid is keeping your website current, and you're paying $200/hr, that's probably not reasonable for a 15 year old. But pay the child a reasonable wage and you're good.

There are several details that should be discussed, so if you'd like more information, let's talk.

Hope this helps.

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