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As we've covered before, a business owner can hire and pay their own child under eighteen tax-free. As long as your child is doing legitimate work and getting paid a reasonable rate, you can pay them up to $6,300 per year before they have to pay a dime in income tax. There is one catch, however. You may still have to pay payroll taxes such as FICA and FUTA which goes towards government programs like unemployment and social security benefits.
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