So you want to pay your credit cards with tax-free dollars? On today’s show, you’re going to learn a financially intelligent way to maximize the money in your family business. You’re going to learn how to make the most out of your credit cards by (legally) taking advantage of the way we run our business.
On this episode of Investing in Real Estate, we’re diving deep into how we pay our children for age-appropriate work, and the IRS regulations on taxing their income. You’ll learn about the types of expenses they can pay for with their tax-free dollars, and more!
On this episode you’ll learn:
- How to legally pay your children a tax-free salary.
- The method you can use to pay your credit cards with tax-free dollars.
- Examples of age appropriate jobs for children.
- And much more!
How to Legally Pay Your Children a Tax-Free Salary
According to the IRS, any minor making less than $12,000 per year does not have to report taxes on that income. This must be a legitimate salary paid from your family’s business, and said minors must be your children.
The Method You Can Use to Pay Your Credit Cards with Tax-Free Dollars
If you’re paying your children a salary, there is a great option for paying your credit cards with tax-free dollars. You can add your children as authorized users on your credit card, and then allow them to pay off any purchases with their tax-free earnings!
Examples of Age Appropriate Jobs for Children
This may vary based on your child’s age and your business. Some business owners use their children in marketing materials. In our business, we have our children do administrative work. They are responsible for shredding documents, putting stamps on outgoing mail, and scan receipts. You can learn more about this on Natali’s blog.
Episode Resources
ZipRecruiter.com/worktogether
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The Opposite of Spoiled by Ron Lieber
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Bankrate
How to Live Like a Boss on Business Credit Cards
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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