First, Gregg and Tom talk about tax advantages for parents who have a business and are thinking about hiring their children as employees. Afterward, they discuss summer jobs for kids in general and things that they should consider doing for their income taxes.
Income Taxes and Your Kids’ Summer Jobs: S07E10 / 166
Table of contents
[00:00] Introduction from Tom Dziubek
[00:37] Interview with Gregg Wind
– [00:51] Hiring your kids to work at your family business
– [01:47] Avoiding the “kiddie tax”
– [03:50] Payroll tax impact
– [05:10] Tax-free benefits
– [05:58] IRA contributions for kids
– [07:39] Summer jobs for kids: explaining the W-4 form
– [10:30] What a teen should withhold for their taxes
– [13:37] Working as an “independent contractor”: the 1099 form
– [16:45] Declaring tips as income
– [18:10] Kids who want to start a business
– [22:04] Self-employment tax even though standard deduction exceeds income
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Updated April 13, 2016 and originally published July 1, 2012. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.