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Child employed by parent , how to not have SE tax figured, Put on SE adjustment sheet?

taxesbymetjr
Level 3
 
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rbynaker
Level 13

That's easy.  Parent puts the child's wages on a W-2.  Child reports W-2 income as wages on the 1040 line 1.

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5 Comments 5
rbynaker
Level 13

That's easy.  Parent puts the child's wages on a W-2.  Child reports W-2 income as wages on the 1040 line 1.

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TaxGuyBill
Level 15
As Rick says, a child that is EMPLOYED (employee) by a parent is not subject to Social Security and Medicare.

If the child is an Independent Contractor (which seems extremely unlikely) the child IS subject to SE tax.
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taxesbymetjr
Level 3
CHILD WAS 1099 OTHER INCOME , SO HAS TO BE WAGES OR WILL BE NOT AFFECTED BY STD DEDUCTION
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Just-Lisa-Now-
Level 15
Level 15
They should NOT have been issued a 1099MISC as other income if they are working for their parents.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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taxesbymetjr
Level 3
Thanks, will inform client..
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