DiscoverEarn Your LeisureTriple Tax Benefits of Hiring Your Children Explained
Triple Tax Benefits of Hiring Your Children Explained

Triple Tax Benefits of Hiring Your Children Explained

Update: 2024-10-20
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Welcome back to another insightful clip of Earn Your Leisure (EYL)! In this clip, we're diving deep into a strategic yet often overlooked tax-saving method: hiring your children. Our special guest, Ms. Business, and host Rashad Bilal walk you through how you can benefit from hiring your children, while also investing in their future.


*Key Takeaways:*


1. *Hire Your Children for Tax Benefits:*

  • In 2024, you can pay your child up to $14,600 without it being taxable.
  • The money cannot be used for essentials like food and shelter, but can be used for extracurricular activities.


2. *Triple Tax Deduction Strategy:*

  • *Business Tax Deduction:* Paying your child is a deductible business expense.
  • *Non-Taxable Income for Child:* The income is non-taxable for your child as it's under the standard deduction limit.
  • *Roth IRA Contributions:* Investing this money into a Roth IRA leverages compound interest, providing a tax-free growth and withdrawal in the future.


3. *Eligible Ages and Roles:*

  • While there's no strict age limit, roles must be reasonable and age-appropriate.
  • Ms. Business recommends hiring children typically between ages 7 to 17.
  • Younger children can be employed in tasks like modeling or handling easy tech-related jobs.


4. *Legal and Practical Considerations:*

  • This method should be implemented through an LLC to avoid payroll complications.
  • Children must perform actual and reasonable tasks for the business.


Hiring your children is more than just a tax deduction; it's a holistic approach to saving for their future while giving them invaluable work experience. Join Ms. Business and Rashad Bilal as they break down these strategies and much more!


*Timestamps:*


00:00 - Introduction: Importance of Hiring Your Children

00:40 - Limits and Conditions on Child Payment

01:14 - Triple Tax Deduction Explained

01:53 - Practical Examples and Benefits

02:27 - Age Requirements and Eligible Tasks

03:01 - Legal Structures and Practical Implementation


Don't forget to like, comment, and subscribe for more content on maximizing your financial strategies!


*Hashtags:*

#EYL #TaxBenefits #HireYourChildren #TaxDeduction #FinancialEducation #RothIRA #TaxFreeIncome #TaxStrategy #BusinessTips


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Triple Tax Benefits of Hiring Your Children Explained

Triple Tax Benefits of Hiring Your Children Explained

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