Save on Taxes and Build Your Child's Nest Egg

Save on taxes and build your child’s nest egg.

Roth Wizards tracks real work, tells you how much to invest in their Roth IRA, and keeps every record CPA‑ready.

Download on theApp Store
Get it onGoogle Play

Compliance built on IRS Publication 15 and IRC Section 3121(b)(3)(A) regarding family employment.

Log real jobs (not basic chores)
See safe Roth contribution limits
Download clean proof for your CPA

Simple Example

$6,200 paid to Sarah.

Sarah’s Roth can often earn $6,200 federal-tax-free while you save about $1,550 on your own return.

Turn helping out into real earnings and long-term savings.

See what their kid job money could become.

Pick the age your child starts and how much you can document each year (up to $7,500). Roth Wizards assumes you contribute every year until age 18 and the money grows at 7% after that.

Age 18

$125,000

After teen contributions

Age 25

$195,000

Let it keep compounding

Age 30

$275,000

Still growing tax-free

Age 65

$2.9M

Decades of tax-free growth

Did you know?

Most parents need a quick reset on how this works. The IRS loves documentation. Roth Wizards helps you define the job, log the work, store proof, and know exactly how much is Roth-eligible. We also flag when tasks look like normal chores so you avoid mistakes.

78%

of parents didn’t know they could employ their own children for real work.

2×

benefit when you deduct wages and then invest the same money in a Roth IRA.

<5 min

to log a job in Roth Wizards with photos, pay, and approvals.

No business? No problem.

Even without a business, your kids can earn real income for legitimate household work. Every dollar they earn can go toward a Roth IRA—building the same tax-free wealth by age 65. The only difference? You won’t get a tax deduction, but your child still gets a financial future.

📸

Photo Organization

$15/hr

Organize family photos, create albums, digitize old photos

Ages 10+

🎬

Video Editing

$20/hr

Edit family videos, create highlights, add music and transitions

Ages 13+

🌿

Yard Projects

$18/hr

Landscaping, seasonal cleanup, outdoor maintenance projects

Ages 12+

🗂️

Sorting & Organizing

$10/hr

Sort items, organize pantry or closets, count inventory, simple filing

Ages 6+

📊

Digital Tasks

$12-18/hr

Spreadsheet work, data entry, research, file organization

Ages 11+

📚

Tutoring Siblings

$15/hr

Help younger siblings with homework and learning activities

Ages 14+

The key: Real work that teaches marketable skills—not routine chores like making beds or doing dishes. Think tasks you’d consider hiring someone else to do.

With or without a business

Whether you run a business or simply need help around the house, you can pay your child for real work. The key difference is what tax benefits you get.

No business
(personal work at home)

Can Pay?
Yes

Tax Deduction?
No

FICA Taxes?
Yes

Sole proprietor
or Single-member LLC

Can Pay?
Yes

Tax Deduction?
Yes

FICA Taxes?
No (under 18)

Partnership
(both parents only)

Can Pay?
Yes

Tax Deduction?
Yes

FICA Taxes?
No (under 18)

S-Corp or C-Corp

Can Pay?
Yes

Tax Deduction?
Yes

FICA Taxes?
Yes

Key takeaways

You can always pay your child for real work, whether or not you have a business.
Parent-owned sole proprietorships, single-member LLCs, and parent-only partnerships get the best tax treatment (no FICA, full deduction).
No business? You can’t deduct wages, but the income still qualifies for a custodial Roth IRA—building your child’s wealth tax-free.

The headaches Roth Wizards removes

Messy records

Random notes and Venmo screenshots don’t cut it when your CPA asks “How was this work documented?”

Allowance vs. real work

Basic chores aren’t earned income. Roth Wizards separates “family life” jobs from work that can be paid and deducted.

Fear of messing up

You want the tax break, not an audit. Roth Wizards turns IRS rules into short, plain-language checklists.

What Roth Wizards Does

📋

Plan Real Jobs

Ideas for marketing, photos, packing, and more your kid can actually do.

⏱️

Track Hours & Pay

Log time, rate, and approvals in a couple of taps.

💰

Watch Roth Limits

See how much you can safely contribute each year.

📄

Handle Tax Forms

We help you get your EIN and generate W-2 and W-3 forms.

📁

Export Proof

Get a clean, year-end summary with all the receipts attached.

📸

Photo Documentation

Attach before/after photos to prove work was real and substantial.

4 Simple Steps

1. Pick a Job

Choose a job your child can truly help with.

2. Log Time & Pay

Log the time and pay them from your business.

3. Match Income

Match that income with a custodial Roth contribution.

4. Relax

Roth Wizards stores every detail for you.

Real numbers

How one weekend project can shift money into savings.

The Martinez family

Kid earnings logged:

$3,000

Parent tax savings:

~$900

Roth contribution:

$3,000

Roth Wizards paperwork:

Job scope, timesheets, photo + payment proof

Result: Parent pays less in taxes. Child gets a head start on investing.

Compliant by design

Friendly tone. Serious documentation. Every Roth Wizards workflow is built to line up with IRS guidance on hiring your own kids so you’re not guessing what’s allowed.

Help getting your EIN (Employer Identification Number) for proper payroll setup.
Automated W-2 and W-3 form generation for tax filing.
Employment letters with e-signatures to document the arrangement.
Designate wages as household or business to keep records clean.
Contribution tracker capped at earned income or IRS limit, whichever is lower.
Downloadable audit binder of the whole year in a few clicks.