Tax Tip Tuesday | Hiring Your Kids

Hey everyone, I hope you’re ready for another Tax Tip Tuesday. So I get a lot of questions about hiring your kids, and the type of jobs they can do. So I generally recommend that you only hire kids if they’re seven or older. So there are tax court cases out there that basically make that the safe age.

Now, there are some people that will hire their kids as models for their website or other sort of business purposes. And that’s fine. Generally, models do about a hundred bucks an hour, but you’re not going to be getting as much savings when it comes to shifting that income to your kids and writing off their salary through the business, with that. And so, it’s still a good amount, even a couple of hundred bucks a year is really great because that can sit in a Roth IRA and grow, obviously, from when the kid is basically born. But in general, when it comes to more, I guess, not meaningful work because that demeans models, but more … basically for other jobs, you want to wait until your kids are at least seven.

So my son, Grant, just turned seven this year, and so I put him on payroll. He is working right now. So every day after school, he helps me, and usually doing jobs like being my janitor, going and emptying the trash bins in my office, doing any sort of filing. When he’s older, I plan for him to do a lot of computer type work. So some kids are really great with websites or social media, taking videos, any of those sort of things. Basically, you can go and have your kids do any of those sort of jobs.

Yeah, especially, like when I was growing up, I went to my father’s office, and he’s a physician as well. And I was filing, I was … patient records, I’d say, “Okay, it’s F,” and file them away in alphabetical order. And this was when I was 15 or something like that. So it doesn’t have to be anything rocket science, but it has to just be enough so then that way your kid earned income, and then you’re able to go and put that money into a Roth IRA so that it can grow. And then you can use that for school later on, or just for kid’s retirement, etc. So yeah.

If you have any questions … Actually, I’d really like to know, do your kids work in your business? And if so, what sort of jobs do you have them do? I think it’d be really great to share with everybody. It’s just so that it kind of kicks up the dirt a little bit, it gets people thinking about ideas for their own kids. So any questions, let me know. And I hope you enjoyed this tip. Thanks.