Paying your kids in the business
Up to the standard deduction
Can I Hire My Kids and Write It Off?
Short answer: Yes when they do real work at a reasonable wage: the business deducts it, and a child can earn up to the standard deduction ($16,100 for 2026) tax-free.
Sole proprietors and parent-owned partnerships don't owe FICA on wages to children under 18. Keep timesheets and job descriptions.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
Paying your kids in the business
Typical range: Up to the standard deduction
General Business
Yes when they do real work at a reasonable wage: the business deducts it, and a child can earn up to the standard deduction ($16,100 for 2026) tax-free.
Business justification
Yes when they do real work at a reasonable wage: the business deducts it, and a child can earn up to the standard deduction ($16,100 for 2026) tax-free. Sole proprietors and parent-owned partnerships don't owe FICA on wages to children under 18. Keep timesheets and job descriptions.
Category
- Business Write-Off Questions