This content was created by MARK KOHLER. This content was uploaded by MARK KOHLER. This is a YouTube video titled "The 5th Tax Day of Christmas: Putting Your Children on Payroll" (created 2019-12-26) featuring MARK KOHLER giving a tax-advice talk. He explains how business owners can pay family members (children, parents, nieces/nephews, grandchildren) and claim tax deductions, the need to process payroll before December 31, differences in rules for under-18 vs 18 and older, distinctions between W-2s and 1099/outside labor, and clarifies this involves earned income (not the kiddie tax). He encourages viewers to study the procedures to maximize legitimate, IRS-compliant deductions.
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On the fifth day of Christmas my true love gave to me five paychecks for the kids. Now for those of you that are single, free and fancy, married, no children, whatever the case may be, if you're not helping support a family member. And really this strategy is larger than just children, it's family members. If you're helping mom and dad, niece or nephew, grandchildren, you want to take a tax write off for the services they're providing in the business, you've got to process that paperwork, that payroll, if you will, before December 31st. Now, easily said, a little more complicated doing it because there's different rules if the children are under age 18 or if they're 18 or older. Also, are you doing it for a niece, nephew, parents or that grandchild? I've got all sorts of different procedures and strategies that give you the maximum tax deduct deduction. But I want to warn you here, this does not mean giving your kid a W2. There's a lot of strategies that involve this that are legitimate and legal with the IRS where you might use a 1099 or just call it outside labor when they're under age 18 and a dependent or child of yours. Now, if I just blew your mind with a great strategy and you've never heard of this and all my business owners that have children were implementing this and talking about it, you've got to study this up, you've got to check it out. So look down below, read up on ways to involve your family in the business and take a tax write off and then pay taxes in their tax bracket. This is not the kiddie tax. This is not unearned income. This is earned income from your 10 year old helping clean the office or you know, run the weed eater around your rental property. So look into it. It's a great strategy, but it has to be processed before December 31, even if it's for payments earlier in the year.
