I'm sure how it works, here is some article I googled "“Kiddie Tax” from web
- Hire your child to work for your company. Because the wages constitute earned income, this will not trigger any kiddie tax complications. As long as the child is paid a reasonable salary for the services performed, your company can deduct the wages. This is a good way to help a child save money for college without adverse tax consequences."
For those who are interested, please do your own research.
