Maximize Tax Savings by Hiring Your Kids in Dental Practice

Did you know your dental practice could save money on taxes just by hiring your children? This simple, often overlooked strategy can create surprising financial benefits—for both your business and your family.

Why Hiring Your Kids Makes Financial Sense

As a dental professional, you’re always looking for ways to reduce your tax burden and improve cash flow. Hiring your kids is not just a great way to teach them the value of work—it’s also a smart move to lower your business and personal taxes.

Here’s how it works: when you legitimately employ your children, you’re able to pay them a reasonable wage for the work they do. That income becomes a business expense for your practice. And since children under 18 who work for a parent’s sole proprietorship or LLC (taxed as such) are generally exempt from Social Security and Medicare taxes, you can save even more.

How Much Can You Really Save?

Let’s say you hire your 15-year-old to help file paperwork or manage your social media account. If you pay them $13,850 in 2024—the standard deduction—they won’t owe any federal income taxes on that amount. And because it’s deducted from your practice’s income, you reduce your taxable income by the same amount.

If your business is taxed at 30%, that’s over $4,000 in tax savings just for one child! Imagine the savings if you employ more than one.

What Jobs Can Kids Perform in a Dental Practice?

You’re probably wondering—what can my kids actually do at the office? Here are some age-appropriate, IRS-acceptable tasks:

• Shredding documents or filing paperwork
• Cleaning waiting rooms or restocking supplies
• Helping with appointment reminders or making calls
• Creating social media content (teenagers love this!)
• Organizing marketing materials or mailers

The key is to make sure the work is real, age-appropriate, and that you document the hours and wages just like you would with any other employee.

Things to Keep in Mind

Before you start drafting a job offer letter for your son or daughter, consider these tips:

• Pay a reasonable wage. It should match what you’d pay someone else to do the same job.
• Track hours worked. Always keep records, even if it’s your child.
• Use a separate bank account. Pay them through payroll and deposit into their own account.
• Explore retirement options. Your child can start a Roth IRA with the income—setting them up early for financial success.

Teaching Kids Responsibility—and Saving Taxes

Beyond the financial perks, hiring your kids can teach them life skills—like time management, communication, and the value of earning a dollar. It also gives them a firsthand look at how small businesses operate and thrive.

Think of it this way: you’re investing in your child’s future while keeping more money in the family pocket. It’s a win-win.

Talk to a Tax Professional

As with any tax strategy, it’s best to consult a CPA or tax advisor familiar with small businesses and family employment rules. There are guidelines to follow, but the rewards are more than worth it.

So, the next time the summer break rolls around—or even during the school year—ask yourself: could my child help out at the dental office? Chances are, the answer is yes. And your future tax bill might just thank you.