As a parent, you may be looking for ways to save on taxes while also teaching your children important
financial lessons. One strategy that can help achieve both goals is employing your kids in your business.
Here are some reasons why employing your kids to save in taxes is a smart move:

  1. Tax Benefits: When you employ your children, you can deduct their wages as a business expense,
    which can reduce your taxable income. Additionally, your children can earn up to a certain amount of
    income each year without owing federal income tax. In 2021, the standard deduction for a single taxpayer
    is $12,550, so your child can earn that much without paying any federal income tax.
  2. Teach Financial Responsibility: Employing your kids can teach them valuable financial skills, such as
    budgeting, saving, and investing. By working in your business, they can learn the importance of hard work
    and the value of money. This can help set them up for financial success in the future.
  3. Build a Family Business: Employing your children can also help build a family business. By involving
    your kids in your business, you can pass on your knowledge and expertise to the next generation. This
    can help ensure the longevity and success of your business.
  4. Create a Retirement Plan: By employing your kids, you can also set up a retirement plan for them. You
    can contribute to a Roth IRA on their behalf, which can grow tax-free over time. This can help your
    children build a nest egg for their future.
  5. Keep it in the Family: Employing your children can also help keep the business in the family. By
    involving your kids in your business, they can develop a sense of ownership and pride in the company.
    This can help ensure that the business stays in the family for generations to come.
    In conclusion, employing your kids to save in taxes is a smart move that can benefit both you and your
    children. By teaching your kids financial responsibility, building a family business, creating a retirement
    plan, and keeping the business in the family, you can set your family up for financial success. Be sure to
    consult with a tax professional to ensure that you are following all the rules and regulations.