Hiring Your Child

If you are self-employed, consider hiring your child part-time. Wages paid for actual work are deductible as a business expense, reducing your income taxes and your self-employment taxes. The wages paid to your child are not subject to Social Security and Medicare taxes if your child is under age 18 and are exempt from federal unemployment tax until your child reaches age 21. Dependent children can earn up to $14,600 of tax-free income in 2024 due to the standard deduction. Income over $14,600 is taxed at the child's own tax rate, which may be significantly lower than yours.

 

 

 

 

 

 

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