Friday, 2026-05-29 — Your Kids Are a Tax Write-Off

A contractor walked into my office last month. Three kids. Ten-year business. Never once put his kids on payroll.

I pulled up his tax returns.

He overpaid the IRS by more than $50,000 over the last decade. Completely legally avoidable.

Here’s the deal: if your child does legitimate work for your construction business, you can pay them. The IRS has repeatedly lost court challenges on this. When structured correctly, those wages are deductible for your business and taxed at your child’s rate, which is often zero.

You’re already paying for their phone, their car insurance, their expenses with after-tax dollars at your 35-40% bracket.

Paying them through the business flips that entirely.

The rules matter: ages, entity type, actual work performed. But for the right contractor, this is one of the cleanest strategies in the tax code.

Stop leaving your family’s money on the table.

Free Contractor Tax Assessment:

Contractors: Stop Overpaying Taxes Now

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.