Can I hire my own kids in my business to save on taxes?

Yes, and it can be legitimately tax-smart if done correctly. When you pay your children for real work in your business, those wages are a deductible business expense, and the child can earn up to the standard deduction ($16,100 for 2026) with little or no federal income tax. If your business is a sole proprietorship or a partnership owned only by both parents, wages paid to a child under 18 are also exempt from Social Security and Medicare taxes — a meaningful saving. The catch is the work must be genuine, age-appropriate, and reasonably paid for what it is; you need a real job description, timesheets, and actual paychecks. Paying a toddler $15,000 to "model" won't survive an audit. Done right, you can also fund the child's Roth IRA from their earned income. Keep documentation airtight.