In this video, I walk through the benefits of hiring your kids in a business that you own.

Some of the benefits including no FICA tax if your child is under the age of 18, you get to deduct the payment to your child in your business, and if you pay your child under the standard deduction - there is no tax that your child has to pay on their personal tax return.

The money that your child receives can be used to pay for their education, set up a 529 plan or even a ROTH IRA (since your child now has earned income).

Another important benefit on this whole process is that you are teaching your children on how to operate a business. They get to see you work. In addition, you can teach them about managing investments, if you set-up a ROTH IRA for them.

Now for the rules:

1. your child should be at least 7 years of age - there is court ruling that support this age minimum. if you plan to hire your child and they are younger than 7, then I suggest you have enough support in case you get audited by the IRS
2. have a written job description for what your child will be doing
3. pay them a reasonable wage
4. deposit the money directly into your child’s bank account
5. issue them a W2
6. MOST IMPORTANT - the work your child is doing relates to your business,

Finally, I walk through an example showing the benefits on a tax return.

About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.

The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.

I will be covering the following topics:

- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship

New videos are released every week, so be certain to SUBSCRIBE! : shorturl.at/fL014

#taxes #taxfree #businesstax

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