Tax Reform Increases the Tax Benefits of Employing Your Child

Sure. Tax reform has had its downsides, but it also provides some substantial money-saving benefits for business owners.

For example, if you (or you and your spouse) own a business, your children can dramatically increase tax benefits for both you and them. That’s a win/win situation too good to pass up!

Want to find out how to put a totally legal “hire your child” strategy to work for your family?

Read my new article titled Tax Reform Increases the Tax Benefits of Employing Your Child.

Three ways our fact-filled article can help you:

1. We’ll explain the important tax reform changes that affect you. For taxable years after December 31, 2017 (and before January 1, 2026), the standard deduction for a single taxpayer nearly doubles to $12,000 in 2018 (and increases every year for inflation). This means that a single taxpayer (like your youngster), can earn up to $12,000 in W-2 wages and not pay a penny in federal taxes! And what’s more, the child’s parents are exempt from social security, Medicare, and federal unemployment taxes! All the good news will be explained when you read the full after-tax-reform article.
2. You’ll learn why self-employed businesses are winners. The big-dollar benefits of hiring your child go to the Form 1040 Schedule C taxpayer and the husband and wife partnership. Why? Because these business entities are exempt from FICA when they employ their children (under eighteen years of age). We’ll explain this and a whole lot more when you read the full after-tax-reform article.
3. We’ll also explain strategies for S and C corporations, non-spouse partnerships, and self-employed taxpayers with children age 18 and over. True. The S and C corporations (and non-spouse partnerships) do not qualify for the benefits mentioned above. They do have to pay the payroll taxes on all employees. Period. But all is not lost. In fact, S and C corporations and non-spouse partnerships can still come out ahead thanks to the new tax-reform laws. We’ll explain how to come out a winner when you read the full after-tax-reform article.