Age 18
$114,844After teen contributionsPay your kids. Save on taxes.
Save thousands in taxes and build your child's nest egg.
Pixie tracks real work, tells you how much to invest in their Roth IRA, and keeps every record CPA‑ready.
Built around IRS rules for hiring your own kids. Reviewed with tax pros.
- Log real jobs (not basic chores)
- See safe Roth contribution limits
- Download clean proof for your CPA
Simple example
$5,400 paid to Johnny.
Johnny’s Roth can often earn $5,400 federal-tax-free while you save about $1,350 on your own return.
Turn "helping out" into real earnings and long-term savings.
Get startedCompounding impact
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). Pixie assumes you contribute every year until age 18 and the money grows at 7% after that.
Starting at age 7 with $6,000 per year could become:
Age 25
$184,414Let it keep compoundingAge 30
$258,650Still growing tax-freeAge 65
$2,761,502Decades of tax-free growthDid you know?
Most parents need a quick reset on how this works.
The IRS loves documentation. Pixie 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.
of parents didn't know they could employ their own children for real work.
benefit when you deduct wages and then invest the same money in a Roth IRA.
to log a job in Pixie with photos, pay, and approvals.
With or without a business
How paying your child works in different situations.
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.
| Your Situation | Can Pay Your Child? | Tax Deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe. | FICA Taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption. | What to Know |
|---|---|---|---|---|
| No business (personal work at home) | Yes | Tax deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe.No | FICA taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption.Yes | Still counts as earned income for a Roth IRA. Think: deep cleaning before guests, yard projects, helping with rental property prep. |
| Sole proprietor or Single-member LLC | Yes | Tax deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe.Yes | FICA taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption.No (under 18) | Best setup. Wages are fully deductible and you skip FICA taxes if your child is under 18. |
| Partnership (both parents only) | Yes | Tax deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe.Yes | FICA taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption.No (under 18) | Same benefits as a sole prop, but only if both partners are the child's parents. |
| Partnership (with a non-parent) | Yes | Tax deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe.Yes | FICA taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption.Yes | Your child is treated like any other employee—wages are deductible but you pay FICA. |
| S-Corp or C-Corp | Yes | Tax deduction?Tax deduction means you can subtract your child's wages from your business income, lowering your taxable income and the taxes you owe.Yes | FICA taxes?FICA taxes are Social Security and Medicare taxes (15.3% total). Children under 18 working for parent-owned businesses often get an exemption.Yes | Corporations don't get the FICA exemption, even for your own kids. |
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 Pixie 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. Pixie separates “family life” jobs from work that can be paid and deducted.
Fear of messing up
You want the tax break, not an audit. Pixie turns IRS rules into short, plain-language checklists.
What you get
Tools, templates, and real humans if you get stuck.
Quick start kit
Ready-made job ideas, scripts, and pay ranges so you know what to call the work and what to pay.
EIN & tax forms
We help you get your EIN and generate W-2 and W-3 forms—everything you need for proper payroll documentation.
Live dashboards
Per-kid earnings, Roth contribution caps, and alerts if you're close to any limit.
CPA-ready exports
One-click download with jobs, hours, photos, and payment proof your accountant can review fast.
AI Job Suggestions
Social Media Content
Create and schedule posts for Instagram and Facebook
Product Photography
Take photos of products for online store listings
Data Entry
Update inventory spreadsheets and customer records
Powered by AI
Smart job suggestions tailored to your business
Not sure what jobs are age-appropriate or how much to pay? Let Pixie's AI analyze your business and generate personalized job ideas with fair market rates.
- Jobs matched to your specific business type and industry
- Age-appropriate tasks for each child's capabilities
- Market-rate pay suggestions based on skill and complexity
- Compliant with child labor laws and IRS requirements
- One-click to pre-fill job logging forms
Example: Own an e-commerce jewelry store? Pixie might suggest your 14-year-old help with product photography at $20/hr, while your 10-year-old assists with packaging at $12/hr—both legitimate, age-appropriate roles that help your business.
Simple pricing
Pixie pays for itself the first time you use it.
Most parents using Pixie save hundreds in taxes each year. One weekend of real work can cover the cost of a full year of Pixie.
Start your 14-day free trial • No credit card required
Reminder: Pixie is a business expense—write it off just like any other tool you rely on.
We add $10/year per kid to Starter & Pro so you only pay for what you need.
Starter
For families testing this for real.
$89/year$9.83/month
14-day free trial • Cancel anytime
Covers up to $2,000 in documented kid earnings per year. One kid included; add $10/year per additional child.
- ✓ Log real jobs, hours, and pay
- ✓ Photo proof and notes attached to each task
- ✓ Multiple projects per kid
- ✓ Smart flags for "allowance" vs real work
- ✓ EIN application help
- ✓ W-2 and W-3 form generation
- ✓ CPA-ready exports
Pro
Founding family priceUnlimited earnings, all kids, CPA-ready binder.
$109/year$16.83/month
14-day free trial • Cancel anytime
Founding families lock in this price for life. Future pricing: $149/year.
Unlimited documented earnings. Each kid adds $10/year so you only pay for who's on payroll.
- ✓ Everything in Starter
- ✓ Unlimited earnings tracking per child
- ✓ All kids in one account
- ✓ Unlimited projects and jobs
- ✓ Full year-end CPA-grade audit binder
- ✓ AI-powered market-rate pay suggestions by job type
- ✓ Contribution guardrails tied to IRS limits
- ✓ Priority support for tax-time questions
What Pixie does
Kid chore payroll with grown-up guardrails.
- 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. Pixie organizes everything you need for compliant payroll documentation.
- Export proof: Get a clean, year-end summary with all the receipts attached.
4 simple steps
- Pick a job your child can truly help with.
- Log the time and pay them from your business.
- Match that income with a custodial Roth contribution.
- Relax. Pixie stores every detail for you.
Pixie is an education and record-keeping tool, not tax or legal advice. Bring your CPA if you want extra peace of mind.
Real numbers
How one weekend project can shift money into savings.
A parent in a 32% tax bracket pays their teen $2,400 for product photos for the family business. Pixie keeps the job details, photos, and payment proof, so the pay can be deducted and the same $2,400 can go into the teen’s Roth IRA.
The Lopez family
- Kid earnings logged: $2,400
- Parent tax savings: ~$768
- Roth contribution: $2,400
- Pixie 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 Pixie 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.
- Suggested pay ranges based on job type and age.
- Clarifies what counts as work (babysitting, rental prep, yard projects) versus basic chores.
- Flags when tasks look more like allowance than real work.
- Contribution tracker capped at earned income or IRS limit, whichever is lower.
- Downloadable "audit binder" of the whole year in a few clicks.
Parents & money pros
For people who care about both kids and clean books.
“Pixie finally gave us the receipts we needed. My daughter edits Reels for our shop, gets paid, and now checks her Roth balance like it’s a game.”
Alisha G., boutique owner
“As a CPA, I just wanted clear data. Pixie’s export made it easy to sign off on our kids’ paychecks at tax time.”
Marcus P., CPA & dad of 3
“Our twins take product photos. The kid-friendly prompts helped them understand we’re investing for them, not just giving them more spending money.”
Jen & Leo, ecommerce founders
FAQ
Common questions from parents.
Do I need a business to use Pixie?
You can use Pixie with or without a business. If you have a business (sole proprietor, LLC, partnership, corporation), you can deduct wages paid to your children as a business expense AND those wages count as earned income for a custodial Roth IRA. If you don't have a business, you can still pay your children for real, non-routine work (not regular chores like cleaning their room or doing dishes), and those wages count as earned income for their Roth IRA—but you cannot deduct the wages on your taxes. Examples of non-routine work: deep cleaning before guests arrive, preparing a rental property, yard projects beyond regular maintenance, babysitting younger siblings for extended periods.
Do I need to run full payroll?
For many sole proprietors paying their under-18 kids, things can stay simple. Pixie logs work, creates payment receipts, and gives you basic checklists to follow with your CPA.
How much can we contribute to a custodial Roth IRA?
For tax year 2026, the IRS cap for IRA contributions (including custodial Roth IRAs) is $7,500. You can only contribute up to the amount your child actually earned or the IRS limit—whichever is less. Pixie tracks logged earnings and alerts you when you’re nearing the cap so you never over-contribute.
Do you open the IRA?
No. You keep using places like Fidelity, Schwab, or Vanguard. Pixie tells you how much you can contribute each year based on the work you’ve documented.
Does paying my child reduce my state taxes too?
In most states, yes. Because states usually follow federal Schedule C rules, deducting your child’s wages reduces your state taxable income as well.
Ready to get started?
Set up your account and start tracking your kid's work today.
Create your account
Free to try. No credit card required.