Get $220/mo by paying your kids $1,000/mo for chores!
Wait…. WHAT?? Jerry you trippin or scamming but you definitely wildin…
LOL, this is the typical response I get when I tell people they can get paid for paying their children to do chores!
But listen, this is how it’s done…
Step 1 – Start a business! You have to have a business for this to work! Why? Because there are really only 2 tax codes, one for business owners and one for consumers guess which one pays the most taxes?? The consumers! It’s easy to start a business, you can even get one here!
Step 2 – Hire your kids to your company. This is also easy! It’s as easy as listing their role, responsibilities and salary on a sheet of paper and filing it with your business paperwork. You can pay them up to the standard deduction per year. This year, 2022, it is $12,950 or $1,079/mo! Make sure it’s reasonable! There’s no way you are paying your 5 year old $1,000 for tidying up your office.
Step 3 – Pay your kids! There has to be a paper trail. The easiest way to do this is by setting up an account for them at your primary bank, depending on their age. This makes it easy to transfer money to their account. You can also transfer money to a holding account that can be used for saving for education or school supplies for example. Another way to do this by using your business bank account to write them checks. Old school but reliable and leaves an excellent paper trail. And the last way is to use payroll software. You should already have something like QuickBooks to help you manage your invoices, taxes and such but you can also use QuickBooks for payroll! Note, you don’t have to run payroll for your family when they make less than the standard deduction but it makes life easier especially several years down the line when the IRS wants the info. Check out QuickBooks here!
Step 4 – File your taxes! At the end of the year and enjoy a hefty deduction up to 12,950 per child! At a 22% tax bracket that’s $2,849 CASH VALUE, ON TOP OF your tax credit for having a child under 17! That breaks down to less than $239/mo but a nice round number of $220/mo cash for paying your children…
Take aways….
I hope you got some value from this post. If anything, that there are more ways out there to KEEP your money just by having a business! You are probably already paying your kids an allowance, now you get to get a tax deduction for it and put 22% of it back in your pocket every year or save it for their education… either way it’s your money… KEEP IT!
If you are stuck because you dont know what business you can start for less than $200 that you can put all these tax deductions into use, stopy by this link and enter your info to see what we are doing to make it easier than ever to start a business from home, complete with services that people need, training and an incredible compensation plan: Click Here!
Questions?
Contact me here!
I look forward to helping you Go IN For Your Dreams!