Your numbers
Total wages to your kids$32,200
Income tax shifted off your return$10,304
Payroll tax the wages owe$0
Net benefit$10,304
The wage above $16,100 per child isn't tax-free — it's taxed at your child's (low) rate. The big win is the first $16,100 each, at their 0% bracket.
Documentation to keep (this is what makes it audit-proof)
Real, age-appropriate work they actually perform
Reasonable wage for that work (what you'd pay a stranger)
Timesheets / a log of hours and tasks
A W-2 filed for each child; wages paid to their own account
A written job description & pay rate on file
Educational only — not tax, legal, or financial advice. ScanMyTaxes is a software tool, not a tax preparer or advisor, and does not prepare or file returns. Every figure here is an estimate based on the information you enter; results are not guaranteed and depend on your specific situation. Confirm all strategies, eligibility, and numbers with your own qualified tax professional before acting. Using this tool does not create a client relationship.