If your child is under 18, you can hire them as an employee and pay them up to $12,950.00, simultaneously save on taxes (if you’re a business owner), AND still claim them as dependents on your tax return AT THE SAME TIME?🤯
Below are just SOME of the benefits:
- Your child will learn the value and importance of hard work, business resilience, and earning money
- You’re getting them familiar with working the business and in hopes that they are able to one day run it
- You’re decreasing your taxable income (hello tax savings!) [S Corps and C corps still have to pay FUTA taxes]
- The payment is tax free for the child
- You can reinvest their earned income into a 529 account (tax advantaged college savings plan that earns interest) or custodial IRA account
- There is no age limit as long as you can show documented proof (timesheet, job description, etc.) that they are working. For example, even if you have a toddler they can ‘model’ for your company/marketing purposes. Just make sure their income is deposited into their OWN bank account.
If done correctly, not only are you setting up your #KidVestor for success, but also benefiting as well!
If this is something that would interest you, consult a CPA that could help you and your child get set up!
Remember, it's NEVER too early to set your KidVestor up for success!
View our financial education resources for kids and teens then teach your kids personal finance and how to invest by clicking here.
If your school or group is looking for a finance curriculum to teach your students about how to manage money, click here to learn more on how to integrate KidVestors into your program!
Parents, teach your kids money and make money conversations normal in your household by visiting here.