A Business Owner's Guide to Trusts, Taxes and Infinite Banking with Attorney Anthony Brister
The Infinite Wealth Podcast
Tax-Efficient Ways to Put Your Kids on Payroll
Paying your children and putting them on payroll can be a tax-efficient strategy, but they must be legitimately working for the business. Optimal ways to do this include paying them from a Schedule C business owned by both parents, enabling tax-free income up to $14,600. By distinguishing between employees and contractors, you can determine whether to put your kids on payroll or issue a 1099 form. The latter is advantageous if you are in a higher tax bracket than your children. This strategy not only imparts a work ethic to your kids but also provides a tax benefit by reducing taxes significantly, especially considering that children are often in a lower tax bracket.
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