Can I deduct wages paid to family?

Payments to family need evidence of actual work and reasonable compensation.

Payments to family need evidence of actual work and reasonable compensation. Keep work, payment and any payroll records together.

Records to keep

• The original bill or document, with date and amount.
• A note of the business purpose and any allocation calculation.

A common mistake

A category label alone does not establish eligibility. Review the facts before claiming.