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Does my 16 year old need to file a tax return for odd jobs?

Forum|Forum|5 years ago
March 21, 2021
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In 2020 my son, who was 16 at the time, did odd jobs for me (lawn mowing, raking, etc.).

I paid him cash.

He earned $6000 for the year, which was put into a newly opened Roth IRA as a Tax Year 2020 contribution.

He was not an "employee" and no W2, 1098 or 1099 was created.

I'm not sure if he needs to file a tax return, and if he does, would it be a form 1040 with a Schedule C and a Schedule SE?

Do I, as the parent, need to pay any sort of tax or fill out any paperwork such as a W2?

Best answer by SweetieJean

Yes, he should file a tax return. in part to document the ability to contribute to a Roth. The IRS is going to look at whether he performed adequate services (not just doing chores) for the $6,000. How many hours did he put in during an average week?

As to whether he is an employee (W-2) , or an independent contractor (1099-NEC), that depends upon how much control you exerted over his work. If a contractor, he is subject to 15.3% self-employment tax.

Fund Your Child’s Roth with Chore Income – Marotta On Money

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SweetieJeanAnswer

Employee

Yes, he should file a tax return. in part to document the ability to contribute to a Roth. The IRS is going to look at whether he performed adequate services (not just doing chores) for the $6,000. How many hours did he put in during an average week?

As to whether he is an employee (W-2) , or an independent contractor (1099-NEC), that depends upon how much control you exerted over his work. If a contractor, he is subject to 15.3% self-employment tax.

Fund Your Child’s Roth with Chore Income – Marotta On Money