Self-employed? Put your child to work for you.

Not only will your child learn valuable work skills and you’ll gain needed assistance, but the family will save on taxes. The child will not owe any income tax on wages up to $5,700 in 2009 (about 10 hours a week at $12 per hour for 48 weeks). And you and your child don’t pay Social Security and Medicare (FICA) taxes on these wages. Caution: Document carefully the hours worked and the tasked performed in case the IRS questions whether the payments were legitimate.