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Financial Planning / Tax Strategies
|Subject: wages for kids||Date: 1/13/1999 10:10 AM|
|Author: eedee||Number: 8331 of 122472|
I have a freelance writing business as well as a regular job. I'm not incorporated; I just file a schedule C for my freelance earnings.
I want advice about the following idea: I'd like to put my children on the payroll, pay them $2,000
each per year, and put this money in a Roth IRA for them. I figure this way I save on taxes for the
profit from my business and put some money away for their futures (part of which could help to pay
for college). But how old do they have to be before I employ them? Can a 6-yr-old earn $2,000 and
start an IRA legally? A 12-year-old? If I do pay them, do I also have to pay social security, etc? Do I
need any documentation about what kind of work they perform?
Thanks for any info on this.
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