Donna Bordeaux explains how to pay your kids through your business tax-free. In 2022, a child can earn up to $12,950 with no federal income tax if it's their only income. She also recommends having them contribute to an IRA to build savings early.
$12,550 (2021).
Increase: $400; 2022 threshold: $12,950.
me@donnaalculatedmoves.com.
The kids just got a raise. If you have your children on your payroll of your business and you're utilizing the full deduction, you could pay them $12,550 in 2021 and they have no tax liability. Assuming that's their only source of guess what? In 2022 they get a $400 raise. That bump will go up to $12,950. So please up your kids, pay for next year and take advantage of the tax deduction. Also, while you're at it, think about if they can set aside that money into an ira. Did you know that if your child sets aside money into that ira, they will be so far ahead of where you and I were at their age and when they graduate college they'll already have. It's also a good educational factor to put aside the money and let them see what saving money does and help them start their savings plan today. So if you have questions about setting your kids up on payroll, make sure you let us know. We'd be happy to talk to you about that strategy as well as others that we share with our VIP clients. Start your relationship with us today.
I'm Donna Bordeaux from Calculated Moves. Please follow us on Facebook, Instagram and LinkedIn. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me@donnaalculatedmoves.com.
