Did you know you can pay your kids on a W-2 up to $12,000 a year and they don’t need to report that income?

(Assuming they have no other income that is). If they are under 18, you don’t need to pay FICA taxes on their wages, either.

If your trade or business is a sole proprietorship or a partnership, you qualify. Unfortunately the IRS doesn’t allow this benefit for Corporations or S-Corps.

For example, if you have a child who is age fourteen or older who actually works for your business, you could pay them $6,000 and then have him or her contribute to a Roth IRA for 2019 with that money. This money grows tax free if done correctly, and this Roth IRA account is not reportable on the FAFSA when they apply to college .