Day 7 – How to Hire Your Kid Legally — And Save Taxes

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  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...
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6 Tax-Saving Tips You Might Be Missing

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πŸ’°6 Tax-Saving Tips You Might Be Missing (Excluding 401(k) & IRA!)

When tax season rolls around, everyone’s looking for ways to save a bit more. While most people are familiar with saving through 401(k) or IRA contributions, there are plenty of other tax-saving strategies worth exploring.

Here are 6 practical tax-saving tips that don’t involve a 401(k) or IRA—perfect for employees, freelancers, or anyone looking to lower their tax bill smartly.

1. πŸ’Ό Use a Flexible Spending Account (FSA)

An FSA lets you set aside pre-tax income for medical or dependent care expenses.

  • Healthcare FSA: Covers out-of-pocket medical costs like copays, prescriptions, or medical devices.

  • Dependent Care FSA: Helps with childcare expenses, including daycare or after-school care.

Why it matters: The amount you contribute reduces your taxable income, which can lower your total tax liability.

2. 🧾 Deduct Business Expenses (Freelancers & Side Hustlers)

If you freelance, run a business, or have a side gig, you may be eligible to deduct business-related expenses:

  • Software, tools, or equipment used for work

  • A portion of your home if you use it as an office (home office deduction)

  • Business mileage or vehicle use

Tip: Keep detailed records. A simple spreadsheet or expense tracker app works wonders.

3. πŸŽ“ Claim Education Tax Credits

Continuing your education? The government rewards lifelong learners:

  • Lifetime Learning Credit: Covers college courses, certifications, and even some job training.

  • Student Loan Interest Deduction: Lets you deduct up to $2,500 in student loan interest per year.

4. πŸ’ Deduct Charitable Donations

Donations to qualified charities are tax-deductible, including:

  • Cash donations

  • Donated goods like clothes, furniture, or books

Important: Always get a receipt, and ensure the organization is a registered 501(c)(3) nonprofit.

5. 🏠 Take Advantage of Homeowner Deductions

If you own a home, don't forget these potential deductions:

  • Mortgage interest

  • Property taxes

  • Energy-efficient upgrades (like solar panels) can qualify for residential energy tax credits

6. 🍼 Claim Tax Credits for Families or Low Income

If you have children or a moderate-to-low income, you may qualify for:

  • Child Tax Credit: Up to $2,000 per child

  • Earned Income Tax Credit (EITC): A refundable credit that can provide significant savings or even a refund

✅ Final Thoughts: “Small Savings, Big Impact”

Taxes don’t have to be painful. By taking advantage of less obvious deductions and credits, you can keep more of your hard-earned money—without relying on just retirement accounts.

Start applying these tips today and approach tax season with confidence.

Want more tax hacks tailored to your situation? Drop a comment or send a message—happy to help!

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