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Showing posts from July, 2025

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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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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📅 Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition)

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  📅 Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition) Business meals can be a legit tax deduction — but only if you follow the rules. And no, your solo sushi craving doesn’t count (unless your client’s name is “Tax Return”). Let’s break it down. 🍽️ What Counts as a Deductible Business Meal? In 2025, most business meals are 50% deductible , but some are 100% . Here’s how to tell the difference: ✅ 50% Deductible Meals with clients or prospects (as long as business is discussed and you’re present) Meals while traveling for business Team lunches or working meals (not lavish) ✅ 100% Deductible Company-wide events (like holiday parties) Meals provided for the employer’s convenience (e.g., working late at the office) Promotional events open to the public (like a launch party with snacks) 🚫 Not Deductible Entertainment (concerts, sports games — even if business is discussed) Meals that are overly extravagant Personal meals or groceries 🧾...
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