How do W2 employees gain taxable benefits of paying to their kids which business owners can in the US..anyone done it

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Start a side business and employ your kids, anything else amounts to fraud/tax evasion.

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It’s tricky with paying kids. You also need documentation like anything else.

Before any of this, you need actual income-generating business. You can’t have a business that consistently loses money just to pay out benefits. Look up the “hobby” rule by IRS.

Double check permit requirements too. We considered adding my LO to my spouse’s modeling agency (which were on board and had gigs for her beginning at 3mo) but ultimately decided not to because of the child labor laws/permitting required in our area (glad to have them in place, just not worth the admin hassle in our case).

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