Rather than giving your kids a weekly allowance for household chores, put them to work for you and deduct the dollars you pay them from your taxable income. Kids under 18, who can file papers, update computer records, and send out invoices, etc. are allowed to earn up to $13,850 in income in 2023 before they have to file a Federal income tax return.
Even if you pay only $20 a week, you'll shift $1,040 over the course of a year in income from your salary over to your child.
Note: This strategy works only if you have an unincorporated business. If you have a corporation, you'll have to pay Social Security taxes on the wages you pay your child. And, of course, it has to be bona fide work - you can't put a four-year-old on the books.
