1099-MISC to a 15 years old boy

[Lucho]

This will be the first time dealing with this situation.

Can parents report in line 21 (1040) the income of a 1099-Misc issued to his 15 years son. Son just did a job for the school during 2010.

Thank you.

Lucho

[rfassett]

No - if the 1099 has the son's SSN, he will need to file his own return.

[Pacun]

No - if the 1099 has the son's SSN, he will need to file his own return.

AND...if you want him to retire a millionaire, ask parents to open a ROTH IRA for him and leave that money for 50 years. Do it for 4 years and he will retire a millionaire ALMOST for sure. What if the market crash? so what, he will loose his 4 year income while he was in school and without any responsibility.

[mcb39]

This will be the first time dealing with this situation.

Can parents report in line 21 (1040) the income of a 1099-Misc issued to his 15 years son. Son just did a job for the school during 2010.

Thank you.

Lucho

I had one of those this year for a 15 year old boy who won a snowmobile race. I put it on line 21 of the "Boy's" return and it was ackd. If they ever question it, he could surely wipe it out with expenses. Sometimes these reporting forms drive you nuts and you can rarely get anyone to change them. Mine was in nonemployee compensation. Go figure that one out.

[RitaB]

Agree with Pacun on the ROTH IRA. It's a wonderful thing. And, if account owner needs to take out the contribution, (not the earnings), he may do so at anytime, penalty free. (Obviously tax free, too, as the contribution is not deducted from income). I don't know why every kid who is eligible is not jumping on this train.

I do, however, have clients that are older who convert Traditional IRA's to ROTH's and actually shoot themselves in the foot, cause they don't have time on their side. I guess the barber advised them to do that when he told them to "LLC" their sole proprietorship.

[Lucho]

No - if the 1099 has the son's SSN, he will need to file his own return.

What about another couple whose two children 14 and 16 also got 1 1099-Misc each (non-employee comp. with Federal Income Tax withheld) but the company did not include SS on any of them. And when parents requested the company to issue new ones with the children SSs, They declined and told them to report the income on parents return.

Thank you again.

Lucho

[Pacun]

What about another couple whose two children 14 and 16 also got 1 1099-Misc each (non-employee comp. with Federal Income Tax withheld) but the company did not include SS on any of them. And when parents requested the company to issue new ones with the children SSs, They declined and told them to report the income on parents return.

Thank you again.

Lucho

This is the correct way of doing business.

Most likely the boys got a W-9 prior to being paid. They ignore it and the accountant said "withhold and issue a 1099 with no SS#". That's the way you do it when you pay someone outside the US who doens't have a SS# or ITIN. That's required by the IRS and from the accountant's point of view, he is done with it. Why will they correct the 1099 at tax time when they are busy correcting their own mistakes? Remember that the mistake could be from the boys.

[Jim Oh Bkkr]

I've got a 20 college student who worked at a beauty shop part-time.

She received a hand written 1099-R - Gross Dist. 1300.00, every other block is empty.

I guess any "tax form" is good enough.

Jim

[Pacun]

I've got a 20 college student who worked at a beauty shop part-time.

She received a hand written 1099-R - Gross Dist. 1300.00, every other block is empty.

I guess any "tax form" is good enough.

Jim

Technically yes. No form is also good since workers should keep track of their income. A form is just a paper with no authority as Jainen stated on another post.

Your 20 old client worked very slow. Maybe he worked as slow as a retired person and that's why he got that 1099-R.