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10 Tax Tips for Farmers


5
All in the Family
Farmers can save quite a bit of money by paying their kids for the work they'd already be doing around the farm. Sandra Seckinger/Corbis
Farmers can save quite a bit of money by paying their kids for the work they'd already be doing around the farm. Sandra Seckinger/Corbis

It's not at all uncommon for kids to help out around the family home – or the family farm. Free labor might sound good, but you'd be surprised how much actually paying your kids to work on your farm could help out your taxes. You can actually deduct their wages, which lowers your taxable profits.

Unlike grown-ups, you don't have to deduct Social Security if they're under 18, or federal unemployment tax if they're under 21. You can even count ways you already provide for them as wages. Say you pay their phone bill, for instance: You can consider those wages and deduct the dollar amount you pay.


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