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Earned Income for minors

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Level 1

I have a new client who has two children ages 7 and 12 who both earned 1099 income as performers for commercials. The 12 year old earned 5729.00 and the 7 year old earned 1043.00. I'm not sure how to report. I told my client that while both will be claimed as his dependents, both would have to file a separate tax returns due to the income generating 1099's. Is this correct?

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6 Replies 6
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Level 15
Level 15

Yes, each child will need to file their own return to claim this self employment income and any expenses they incurred.

Be sure to mark the box that they can be claimed as a dependent of someone else.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 1

Thanks for the reply. I have never had this situation in 27 years of tax prep. So I had the right idea from the start. Thanks again.

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Level 8

Don'f forget to tell the parents that since the kids have earned income they can open Roth IRA and fund them up to the amount of earned income.  Great way to get an early jump while the market is down.

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Level 1

In this situation, will the children be able to claim the standard mileage deduction on their tax return? The parents drive the children to different photo shoots. Even out of state in some cases. 

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Level 10

@dvieyra7 wrote:

In this situation, will the children be able to claim the standard mileage deduction on their tax return? The parents drive the children to different photo shoots. Even out of state in some cases. 


I would say no since the kids do not own (or lease) the vehicles.  Going forward I could maybe see a scenario where the children reimburse the parents for mileage under an accountable plan.

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Level 1

Thank you. 

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