With small business owners facing continued cost pressures, regulatory complexity, and an increasingly unpredictable economic environment, a new book by the president and CEO of the National Association for the Self-Employed (NASE) offers an IRS-compliant strategy to reduce tax liability while investing in the next generation of workers.
“Hire Your Kid: The Sole Proprietor’s Guide to Creating a New Job” (Parker Publishers, February 6, 2026) by Keith R. Hall draws on more than four decades of tax and accounting experience to explain how family-owned and self-employed businesses can legally employ their children, convert ordinary personal expenses into legitimate business deductions, and often save more than $5,000 annually in federal taxes.
The approach, while long permitted under the tax code, remains widely underutilized by America’s smallest businesses.
“Small business owners are operating in an environment where margins are tight and every dollar matters,” says Hall, a certified public accountant (CPA). “The tax code contains provisions that can meaningfully benefit families and entrepreneurs—but only if they understand how to use them correctly.”
The tax code stipulates, for example, that when a child is employed in a parent’s sole proprietorship, or in a partnership in which each partner is a parent of the child, payments for the child’s services are subject to income tax withholding regardless of age. At the same time, payments for the services of a child under the age 18 are not subject to social security and Medicare taxes, and payments for the services of a child under age 21 are not subject to FUTA (Federal Unemployment Tax Act) tax.
“I wrote ‘Hire Your Kid’ because I wanted to make [the tax code’s] tools accessible and practical so every entrepreneur can utilize this tax savings exactly the same way I have done for all three of my children,” Hall says.
“Hire Your Kid” offers a practical guide that turns everyday family expenses into business tax deductions. The book walks readers through the process of creating a job for their child, filing the necessary tax paperwork, and taking full advantage of tax benefits. Hall’s unique strategy allows parents to pay their children a reasonable wage, making the wages tax-deductible, and then use the savings to fund their child’s future through options like Roth IRAs.
Written for sole proprietors, freelancers, and family-run enterprises, “Hire Your Kid” provides a clear framework for implementing the strategy responsibly. Hall outlines how to establish age-appropriate job roles, document work performed, manage payroll and compliance requirements, and leverage tax savings to support long-term goals such as education funding or retirement through vehicles like Roth IRAs.
Beyond the tax advantages, Hall positions the strategy as a broader workforce and financial-literacy opportunity. By bringing children into the family business, parents can teach responsibility, accountability, and real-world job skills—while strengthening household finances during a period of sustained economic uncertainty. Hall also shares insights from his own experience using the strategy, reinforcing the book’s practical focus.
“Hire Your Kid” is intentionally designed as a straightforward guide rather than a technical tax manual, offering business owners actionable steps without unnecessary complexity.
As millions of American taxpayers—including small business owners, solo entrepreneurs, and gig-economy workers—are in the midst of preparing to file their 2025 income taxes this April, Keith Hall, President and CEO of the National Association for the Self-Employed (NASE), is highlighting key changes to the tax code that could help filers reduce their tax burden and maximize their tax savings this year.
As the nation’s leading resource for the self-employed and micro-business community, NASE is alerting Americans – including the recording breaking 21 million plus small businesses that have opened since 2021 who may be unaware of tax rules, updates, and tax benefits available to them this filing period. Many of these changes are designed to help small business owners file more beneficial returns and keep more of what they earn. This is particularly important following Congress’s passage of significant tax reforms last year, including making the 2017 tax cuts permanent and advancing provisions of the One Big Beautiful Bill.
Together, these policies are intended to lower tax burdens for the American public and small businesses alike, by placing more money back into the pockets of entrepreneurs at a time when clarity and certainty matter most.
“The small business community is positioned to come out ahead this tax season because Congress took swift and meaningful action last year to strengthen tax code policies for entrepreneurs,” said Keith Hall, president and CEO of the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-businesses. “Lawmakers passed key legislation designed to help entrepreneurs keep more of their hard-earned money, while making practical updates to the tax code that allow Americans to file more beneficial returns. Expanded income tax brackets coupled with a permanent QBI and enhanced business interest deduction means many small business owners will see real savings this year—putting more money back into their businesses. That capital can be used to hire employees, invest in new equipment, expand operations, or simply create a stronger financial cushion. An overwhelming majority of self-employed individuals and small businesses are expected to benefit from these long-advocated reforms.”
Key 2025 Tax Return Filing Changes and Updates
- The tax filing deadline is Wednesday, April 15th, 2026
- The IRS begins accepting individual tax returns today (January 26, 2026).
- Under the current tax system:
- Wider tax brackets for 2025 tax year filings.
- A lower individual rate, which is where most self-employed small businesses file.
- An increase in the standard deduction, which is $15,750 for single filers and $31,500 for married couples filing jointly.
- Dramatic increase in the available deduction for state and local taxes, known as SALT deductions, up from $10,000 to $40,000, for taxpayers with Adjusted Gross Income less than $500,000.
- A streamlined, standard home office deduction is available.
- The standard mileage rate for business use of an automobile is 70 cents per mile for 2025 tax returns and will increase to 72.5 cents per mile for 2026 tax returns.
- Limits for retirement plan contributions such as SEPs, IRAs and 401(k) plans may have changed for your situation.
- 100 percent depreciation on Qualified business property.
- Changes in reporting thresholds for small businesses that take payments through PayPal and Venmo – and therefore receive an IRS Form 1099-K – has been increased to a $20,000 threshold. Any small business owner reporting less than the $20,000 threshold won’t have to worry about tax paperwork this tax filing season.
- Research and Development (R&D) costs are fully and immediately deductible in the year they’re incurred.
- The 20 percent QBI deduction is now permanently part of the tax code for LLCs, S corporations, partnerships, sole proprietorships, and other pass-through entities.
“Now is the time to get prepared, gather documents, and review the key changes and updates to the tax code to ensure you don’t leave anything on the table. Don’t overlook hidden deductions – and take the time to ensure you are filing the most beneficial return possible. Whether it is itemizing your deductions, claiming the use of your car for work purposes, a streamlined home office deduction or the impact of retirement contributions, all these options can result in financial savings to mitigate any costs associated with your 2025 tax returns. NASE has been a long-time advocate for passage of laws and regulations in our nation’s tax system which allows for many benefits for those in the small business community. We encourage members of our community to educate themselves on these available benefits and maximize them to your advantage,” continued Hall.
