Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Contractors: Save Big in Tax by Hiring Your Kids

Name: Painting Contractors: Save Big in Tax by Hiring Your Kids
Uploaded: 2023-04-20T13:11:40+00:00
Duration: 37 s
Channel: Daniel Honan
Description: Painting business owners can hire their kids and pay them up to the standard deduction ($14,000) tax-free, reducing the owner's taxable income. Open a…

20 Apr 2023 · 1 min

Watch on YouTube

0:37

Painting business owners can hire their kids and pay them up to the standard deduction ($14,000) tax-free, reducing the owner's taxable income. Open a Roth IRA for the child's wages so the money grows tax-free while teaching them about saving.

Chapters

A great way that I've seen painting businesses save big in taxes while teaching their kids the value of hard work is hiring their kids. Since children do not need to pay income tax on earned income up to about $14,000, thanks to the standard deduction, you can move your income to them and save on income tax. And to save even more on tax, you could set up a Roth IRA for your child and put their earned money into that Roth IRA and have the earnings grow tax-free forever. Plus, you're teaching your child the value of savings. So get your kids involved and reap the tax benefits.