Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Skip the Allowance and Hire Your Child
Eva Rosenberg, EA
It takes about $200,000 to raise a child (not including paying for college), according to the USDA’s annual report. Play with this nifty tool at Bankrate.com to see just how much your child costs.
How can you reduce these staggering costs?
Teach your child about money
TaxMama recently moderated a BlogTalkRadio discussion with Dr. Brad Klontz about H&R Block’s Dollars & Sense program, which provides free tools to help parents, schools, and teens learn about money, budgeting, and financial choices. Suze Orman’s website MoneyMindedMoms.com has an entire section devoted to raising money-minded kids. (Full disclosure: I write for both of these resources.)
Hire your child
Isn’t that a red flag? True, some tax-reduction schemers have faced criminal prosecution for promoting this idea. Why? Because they encouraged customers to put their kids on their business payrolls without having them work for the business. Not only is that a tax crime, but it’s also a really bad example to set for your children.
Hire your child for real. Make it clear how important he can be to the success of your business. Don’t lie. Don’t pretend it’s for his own good. YOU need the help. He can help in a variety of ways, depending on his age and skills.
Here are some ideas: your child can help with bookkeeping, filing, letter writing, billing, web design, blogging, marketing, deliveries, shipping, assembling, cleaning up, inventing, market research, selling, and customer service. Encourage her to take on the tasks she would enjoy the most. She may have talents or interests in areas you had not realized that would benefit your business.
Keep the arrangement businesslike. Use time cards if paying on an hourly basis. Keep metrics when paying for performance (number of subscribers, visitors, or new customers, or on commission). Your child may earn a percentage of revenue, or become a partner, if he comes up with a business product, service, or Website you would not have dreamt up.
Many teens have built businesses or websites that earn millions of dollars. It’s not unreasonable to make a teen a full partner when she knows her own generation well enough to create something like Napster, is it? Plenty of adults have underwritten the costs of a child’s business idea.
What are the tax benefits of hiring your child?
If your child works just ten hours a week, for $10 per hour, the wages would be $5,200 per year. Considering FICA/Medicare taxes (15.3 percent), federal (25 percent) and state income taxes (5 percent), you save nearly $2,400 per year. Toss in the other benefits, and you might even double your tax savings. Or you might make health care or college affordable.
Medical Tax Deductions Are Worth More Than You Think
5 Tax Lessons Learned from Filing Your 2010 Tax Return
Last-Minute Tax-Filing Tips: 6 Mistakes Every Tax Filer Should Avoid
Strategies to Ensure You Get Credit for Your Charitable Deductions
Do I Get a Deduction for My Gifts? Or Do I Get Punished for Being Generous?
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.