Family, Kids & Dependents strategies

10 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.

• Family, Kids & Dependents

  Hire Your Kids in the Family Business (Tax-Free Wages)

  Kids under 18 in sole prop/parent-partnership: no FICA, no FUTA — up to $14,600 tax-free earned income.

  $3K–$8K/yr per kid in family tax savings
• Family, Kids & Dependents

  Custodial Roth IRA for Working Kids (Tax-Free Compounding)

  Match your working teen's Roth contributions — $7K/yr compounding tax-free for 60 years.

  $2M+ tax-free retirement corpus per child
• Family, Kids & Dependents

  Grandparent 529 (SECURE 2.0 FAFSA-Invisible)

  Grandparent-owned 529s no longer hurt FAFSA aid — superfund + let it grow.

  $50K–$200K in aid preservation + estate reduction
• Family, Kids & Dependents

  ABLE Account for Disabled Family Member

  Tax-free savings up to $100K for disabled dependents without losing SSI/Medicaid eligibility.

  Preserve SSI/Medicaid + tax-free savings of $100K+
• Family, Kids & Dependents

  Family Limited Partnership (Valuation Discount for Estate)

  Gift FLP interests to kids at 25–35% valuation discount — turbo-charge estate reduction.

  25–35% higher effective gift/estate exemption utilization
• Family, Kids & Dependents

  Dependent Care FSA + Dep Care Credit Coordination

  Pick FSA ($5K pre-tax) OR credit — whichever saves more at your bracket.

  $800–$2,200/yr in tax savings depending on income
• Family, Kids & Dependents

  Hire Your Spouse → Fund Their SEP-IRA / Solo 401(k)

  Legitimate spouse employment doubles retirement contributions + adds §105 HRA option.

  $10K–$30K/yr additional tax-deferred retirement
• Family, Kids & Dependents

  §127 for Adult Children in Family C-Corp

  Employ your college-age kid in the C-corp → $5,250/yr tax-free tuition assistance.

  $5,250/yr per child × 37% bracket = $2K/yr federal savings
• Family, Kids & Dependents

  Crummey Trust for Annual Exclusion Gifting

  Trust with withdrawal rights → annual $19K gifts qualify for exclusion, grow tax-sheltered.

  Efficient annual exclusion use × multiple beneficiaries
• Family, Kids & Dependents

  Child Tax Credit + Additional CTC Optimization

  $2,000/child federal credit (up to $1,700 refundable) — plus state credits stack.

  $2K/child federal + $200–$1,500 state per child