Earn Your Leisure Triple Tax Benefits of Hiring Your Children Explained
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
---
Stay tuned and empower your financial knowledge with Earn Your Leisure! Turn on notifications so you never miss an episode!
Unlock your financial potential with EYL. We'll see you in the comments section!
---
Earn Your Leisure (EYL) - Bridging the gap between business and cultural relevance.
Our Sponsors:
* Check out PNC Bank: https://www.pnc.com
* Check out Progressive: https://www.progressive.com
* Check out Square: https://square.com/go/eyl
Advertising Inquiries: https://redcircle.com/brands
Privacy & Opt-Out: https://redcircle.com/privacy