In this episode, Dr. Friday highlights a tax-saving opportunity for small business owners—hiring your children under 18. Sole proprietors and partnerships can pay their children up to $14,600 without owing FICA, unemployment, or income tax. This legitimate strategy allows businesses to save thousands in taxes, provided the work is real. For more details on how this loophole works, consult a tax professional.
Transcript:
G’day I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Let’s talk a little bit about hiring our children to work if you are a sole proprietorship or you are a partnership. You can have a child under the age of 18 that you can pay basically up to fourteen thousand six hundred dollars, pay no FICA, pay no unemployment, and since it’s under fourteen thousand six hundred, pay zero income tax. If you need help to understand how that’s going to work, it’s a wonderful loophole for small business owners that have young children and what they can do. It has to be a real job; it’s not them just going out and picking up pizza, but it is a doable thing, and it can save you thousands in tax dollars.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.