Small Business Tax Tips
PUT YOUR CHILDREN TO WORK! If you are self-employed or have a side business, you could consider hiring your child(ren) to perform tasks for which they are qualified in your business. By paying your child(ren) a reasonable wage for their work, you can deduct the wages as an expense from the business income. Your child(ren) can then use the money to purchase the clothes, shoes, and entertainment you may have eventually paid for anyway. Generally, your child may have a total earned income up to $6,100 without having to pay any tax of their own (federal). Your child must perform some labor or service that is of value to your business and the compensation must be appropriate for the task. There are other considerations to make as well. Contact your tax advisor for more information.