How to Pay Your Kids $16,100 Tax-Free in 2026

Описание: Stop paying the IRS more than you owe. Learn how to legally shift business income to your children and keep up to $16,100 tax-free within your family." In this video, I’m breaking down the strategy for small business owners to legally hire their children and pay them up to $16,100 tax-free this year.

For a small contractor, this is one of the most effective ways to move income from your high tax bracket into your child’s zero-percent bracket—keeping more money in the family and away from the IRS.

In this video, we cover:

The 2026 Standard Deduction ($16,100) and how it works for kids.

Why Single-Member LLCs have a massive advantage (No FICA/Medicare taxes for kids under 18!).

What counts as "Legitimate Work" for a contracting business.

The "Paper Trail" you need: Job descriptions, time tracking, and W-2s.

Bonus: How to use those wages to start a tax-free Roth IRA for your child.

Stop giving an allowance and start paying a wage.
#smallbusinesstips #TaxStrategy #SmallContractor #HireYourKids #FinancialFreedom

🛡️ LEGAL & FINANCIAL DISCLAIMER © 2026 Silverligne. All Rights Reserved. The Small Contractor is a digital brand owned and operated by Silverligne.

The information in this video is for educational and illustrative purposes only and does NOT constitute tax, legal, or financial advice.

Entity Matters: Tax benefits for hiring children vary depending on whether the business is a Single-Member LLC (Disregarded Entity) vs. an S-Corp or Partnership.

Compliance: The IRS requires "reasonable compensation" for "actual work." Paying a child for non-business chores or at an inflated hourly rate can result in audits and penalties.

Consult a Pro: We are not CPAs or Attorneys. Tax laws (including the $16,100 threshold) are subject to change and vary by state. Always consult with a qualified tax professional before implementing these strategies. Silverligne assumes no liability for financial or legal consequences resulting from the use of this information.
ABOUT THIS CHANNEL: My name is Sharon Hester, and I help contractors build profitable businesses. I’ve spent years in the construction industry, and I’m currently finalizing my new book on running a small construction business. Subscribe for weekly tips on estimating, contracts, and cash flow—no fluff, just the work.

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Financial & Legal Disclaimer: The content provided by The Small Contractor and Silverligne is for educational and informational purposes only. We are not financial advisors, CPAs, or attorneys. Business involves inherent risks, and the financial, tax, or legal strategies discussed may not be suitable for your specific situation.

Tax laws and business regulations vary by state and are subject to change. Always consult with a qualified professional (CPA, tax attorney, or licensed financial advisor) before making significant business or financial decisions. Silverligne is not responsible for any financial losses, audits, or legal issues resulting from the use of this information.