Tax Insights – July 2019

Hiring Your Kids

Did you know if you are a sole proprietor, husband-wife partnership or one-person LLC that is a disregarded entity, you can hire your children that are under 18 years of age as a way to lower your tax bill?  Any wages paid are a business deduction and as long as each child makes less than $12,000 a year, they are not required to file a tax return. As an added benefit they are not subject to FICA tax.

Quick Tip: You will have to file payroll reports and keep good records of time worked.

Tip provided by:

Tilley & Lincoln, PLLC

CERTIFIED PUBLIC ACCOUNTANTS

691 Addison Avenue – Twin Falls, Idaho 83301

Phone (208) 733-5811 – Fax (208) 733-5841