Hi Robert, my two children are interested in trying their hand at helping me with my cleaning biz. How does paying my kids as employees help maximize my business deductions?
Hey CleanNClear. Paying your kids is a full business deduction. Depending on the income your children are earning, they may or may not have to pay tax on that income. For example, if they are earning income of less than $15,000 annually, they will pay no tax on that income. You will get a deduction, saving you tax, and they will claim the income, which won't pay them tax. You will most likely have a tax benefit as long as the income each child is reporting is less than yours.
