Save money, hire your son or daughter

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How will hiring my child affect my taxes?

Save money, hire your son or daughter

The good news is that when you hire your children, the money you pay to them is taxed at their bracket, not yours. Everyone knows that your last dollars of income are taxed most heavily. By turning that income into an expense, you not only get to deduct it off the top of your income level, but the child most likely will pay no tax on it. (Of course, you have to file all the right forms, but a good accountant can help you with it.)



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Jennifer Mathes, Ph.D.