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What about the Kiddy Tax as it Related to Hiring my Children

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What About the “Kiddie Tax?”  Will It Negate the Benefit of Hiring my Children?

The answer is no. The IRS does have a kiddie tax rule that taxes children at their parents’ marginal tax rate. But it only applies to unearned or “portfolio” income — and if the children are working in the business, then it’s clearly “earned” income.

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