How Hiring Your Kids Can Save You Big on Taxes 👨‍👩‍👧‍👦💸
Did you know that if you’re self-employed, hiring your children can be a powerful tax-saving strategy?
Here’s how it works:
➡️ No FICA or unemployment taxes when you hire your kids under 18 in a sole proprietorship or husband-and-wife partnership.
➡️ Kids pay zero federal income tax on reasonable wages (within the standard deduction).
➡️ You deduct their wages on Schedule C, lowering both your income tax and self-employment tax.
💡 Example: Hire three kids, pay each $15,750. That’s $47,250 in wages deducted from your business income. At a 38% tax rate between Fed and state, that’s over $18,000 saved, with your kids paying zero tax.
👉 It’s a win-win: your kids earn money, you reduce your tax bill, and the family keeps more wealth.

Video Script
Want to save big on taxes while giving your kids real-world experience? If you’re self-employed, hiring your children can be a powerful strategy. Here’s how it works:
#1) No FICA or unemployment taxes when you hire your kids under 18 in a sole proprietorship or husband-and-wife partnership. #2) Your kids pay zero federal income tax on reasonable wages, as long as they’re within the standard deduction. #3) You deduct their wages on Schedule C—reducing both your income tax and self-employment tax. Hire three kids, pay each $15,750. That’s $47,250 deducted. At a 38% combined tax rate, you save over $18,000—while your kids pay nothing. It’s a win-win: your kids earn, you save, and your family builds wealth. This has been a tax saving tip from Accounting Solutions. Book a time to learn more.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.