• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Pocket cash for minor triggers filing

by on
in Small Business Tax

Q. My 14-year-old daughter was paid about $500 for doing part-time work for a family friend’s company. Will she get a W-2? R.H.A., Cortland, N.Y.

A. No. She won’t receive a W-2 because she wasn’t an employee of the company. Nor does the friend’s company have to send your daughter a 1099 because the annual amount was less than $600. If this was your daughter’s only income, she won’t owe any federal income tax on those earnings because they will be sheltered by her standard deduction. Nevertheless, she is technically required to file a tax return with Schedules C-EZ and SE because she received more than $400 of self-employment income.      

Tip: Your daughter may owe income tax based on her unearned income from investments.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37454/pocket-cash-for-minor-triggers-filing "

Related Articles...

    No matches

Leave a Comment