Kids under 18 in sole prop/parent-partnership: no FICA, no FUTA — up to $14,600 tax-free earned income.
Sole proprietors and parent-only partnerships/LLCs can hire their under-18 kids: NO FICA/FUTA (exempt), no state UI in most states, kid's first $14,600 (2025 standard deduction) of earned income = FEDERAL TAX-FREE. Kid can also fund a Roth IRA up to earned income. Requires bona fide work (age-appropriate), documented timesheets, W-2. S-corp/C-corp owners lose FICA exemption but still get income-shifting.
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Match your working teen's Roth contributions — $7K/yr compounding tax-free for 60 years.
Grandparent-owned 529s no longer hurt FAFSA aid — superfund + let it grow.
Tax-free savings up to $100K for disabled dependents without losing SSI/Medicaid eligibility.
Gift FLP interests to kids at 25–35% valuation discount — turbo-charge estate reduction.
Pick FSA ($5K pre-tax) OR credit — whichever saves more at your bracket.
Legitimate spouse employment doubles retirement contributions + adds §105 HRA option.
Employ your college-age kid in the C-corp → $5,250/yr tax-free tuition assistance.
Trust with withdrawal rights → annual $19K gifts qualify for exclusion, grow tax-sheltered.