Question

do I need to issue 1099 to my kid

Forum|Forum|4 years ago
November 5, 2021
1 reply
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Hi My older kid has been babysitting my younger kid and mowing our yards and get paid from us. DO I need to issue 1099 to him? is this considered as his earned income? thanks

X

xmasbaby0

Employee

You are not a business owner so you do not issue a 1099NEC to your own child for babysitting or cutting grass. It sounds more like you are giving your older kid an allowance for family chores. You cannot claim the childcare credit on your own tax return for paying your own dependent for babysitting, if that was on your mind.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Z

zymxhjjtm197227Author

Hi thanks for the clarification. then does the payment my kid received for those chores considered as his earned income?

X

xmasbaby0

Employee

What is this about----are you looking for a way for your child to have earned income in order to start a retirement account?

If you want your child to consider the babysitting/lawn mowing money to be considered earned income, then if your child made at least $400, he can file a tax return and pay self-employment income tax on his earnings. He will be considered to be an independent contractor and will pay 15.3% for Social Security and Medicare. He does not have to receive a 1099 from you to do this. The earnings can be entered as self-employment income without a document.

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

As the parent paying the child, you derive no tax benefits or credits for your own tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**