Farm CPA Report

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Make Sure to Pay Your Kids
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Make Sure to Pay Your Kids

If your kids help on the farm, make sure to pay them an appropriate wage for their services. It will save on taxes.

Paul Neiffer's avatar
Paul Neiffer
Dec 11, 2024
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Farm CPA Report
Farm CPA Report
Make Sure to Pay Your Kids
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four women and one man running together with two dogs on grass field
Photo by kevin laminto on Unsplash

Children who work on the farm can earn up to $15,000 starting in 2025, and have it be tax-free at the federal level. Also, if your child is under age 18 and you are a sole proprietor or husband/wife partnership, the wages paid are not subject to payroll taxes.

If the child is over age 17, then you may pay them a commodity wage which is also not subject to payroll taxes.

Plus, if the wages earned by the child for performing farm work and/or outside work exceeds 50% of their support, then any other investment income earned by the child is not subject to the Kiddie Tax.

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