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Child's Income Tax Form as a Result of 1099-MISC
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njoracle
Mar 17, 2017, 12:01:05 PM3/17/17
to
A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
from the modeling agency. I assume we cannot include the income on the parent's
tax form using 8814 since this is earned income, not interest or dividends.
Therefore, we will have to prepare a separate 1040 for the child. This appears
to be straight forward but just wondered if there is anything special we need to
be aware of in preparing either child's or parent's 1040?
--
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from the modeling agency. I assume we cannot include the income on the parent's
tax form using 8814 since this is earned income, not interest or dividends.
Therefore, we will have to prepare a separate 1040 for the child. This appears
to be straight forward but just wondered if there is anything special we need to
be aware of in preparing either child's or parent's 1040?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Arthur Rubin
Mar 17, 2017, 1:37:13 PM3/17/17
to
On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
> from the modeling agency. I assume we cannot include the income on the parent's
> tax form using 8814 since this is earned income, not interest or dividends.
A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
> from the modeling agency. I assume we cannot include the income on the parent's
> tax form using 8814 since this is earned income, not interest or dividends.
I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC. If the child receives a 1099-MISC, he/she may also have to pay self-employment tax, although I don't think it helps his/her Social Security benefits. At least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social Security record. I'm sure the laws have changed somewhat since then....
--
Arthur L. Rubin
AFSP, CRTP, Brea, CA
njoracle
Mar 17, 2017, 4:59:18 PM3/17/17
to
Arthur Rubin wrote:
> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>> from the modeling agency. I assume we cannot include the income on the parent's
>> tax form using 8814 since this is earned income, not interest or dividends.
>
> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>
Using turbotax, there is no taxable income.
> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>> from the modeling agency. I assume we cannot include the income on the parent's
>> tax form using 8814 since this is earned income, not interest or dividends.
>
> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>
> I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
The child goes to different clients (Magazine, TV, etc) on jobs which are set up
by the agency. Apparently, the clients pay the agency and the agency pays the
child so the agency issues the 1099-MISC.
If the child receives a 1099-MISC, he/she may also have to pay self-employment
tax, although I don't think it helps his/her Social Security benefits. At
least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
Security record. I'm sure the laws have changed somewhat since then....
tar...@google.com
Mar 17, 2017, 7:40:56 PM3/17/17
to
On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
> Arthur Rubin wrote:
> > On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
> >> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
> >> from the modeling agency. I assume we cannot include the income on the parent's
> >> tax form using 8814 since this is earned income, not interest or dividends.
> >
> > A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
> >
> Using turbotax, there is no taxable income.
> > I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>
> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
> by the agency. Apparently, the clients pay the agency and the agency pays the
> child so the agency issues the 1099-MISC.
>
> If the child receives a 1099-MISC, he/she may also have to pay self-employment
> tax, although I don't think it helps his/her Social Security benefits. At
> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
> Security record. I'm sure the laws have changed somewhat since then....
>
> SE tax is $283, even for a 13 year old!!
Don't forget that if you are filing a schedule C, you get to deduct expenses.
> Arthur Rubin wrote:
> > On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
> >> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
> >> from the modeling agency. I assume we cannot include the income on the parent's
> >> tax form using 8814 since this is earned income, not interest or dividends.
> >
> > A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
> >
> Using turbotax, there is no taxable income.
> > I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>
> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
> by the agency. Apparently, the clients pay the agency and the agency pays the
> child so the agency issues the 1099-MISC.
>
> If the child receives a 1099-MISC, he/she may also have to pay self-employment
> tax, although I don't think it helps his/her Social Security benefits. At
> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
> Security record. I'm sure the laws have changed somewhat since then....
>
> SE tax is $283, even for a 13 year old!!
At the least, it would seem that transportation costs could be deductible although that might require the child to reimburse the driver.
njoracle
Mar 17, 2017, 9:16:36 PM3/17/17
to
tar...@google.com wrote:
> On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
>> Arthur Rubin wrote:
>>> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>>>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>>> from the modeling agency. I assume we cannot include the income on the parent's
>>>> tax form using 8814 since this is earned income, not interest or dividends.
>>>
>>> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>>>
>> Using turbotax, there is no taxable income.
>>> I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>>
>> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
>> by the agency. Apparently, the clients pay the agency and the agency pays the
>> child so the agency issues the 1099-MISC.
>>
>> If the child receives a 1099-MISC, he/she may also have to pay self-employment
>> tax, although I don't think it helps his/her Social Security benefits. At
>> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
>> Security record. I'm sure the laws have changed somewhat since then....
>>
>> SE tax is $283, even for a 13 year old!!
>
> Don't forget that if you are filing a schedule C, you get to deduct expenses.
>
> At the least, it would seem that transportation costs could be deductible although that might require the child to reimburse the driver.
>
For each job, driver is his mother. Drives 40 miles into NYC so there are tolls
> On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
>> Arthur Rubin wrote:
>>> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>>>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>>> from the modeling agency. I assume we cannot include the income on the parent's
>>>> tax form using 8814 since this is earned income, not interest or dividends.
>>>
>>> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>>>
>> Using turbotax, there is no taxable income.
>>> I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>>
>> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
>> by the agency. Apparently, the clients pay the agency and the agency pays the
>> child so the agency issues the 1099-MISC.
>>
>> If the child receives a 1099-MISC, he/she may also have to pay self-employment
>> tax, although I don't think it helps his/her Social Security benefits. At
>> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
>> Security record. I'm sure the laws have changed somewhat since then....
>>
>> SE tax is $283, even for a 13 year old!!
>
> Don't forget that if you are filing a schedule C, you get to deduct expenses.
>
> At the least, it would seem that transportation costs could be deductible although that might require the child to reimburse the driver.
>
and parking. Mom also buys lunch. I doubt if there was any reimbursement so it
is probably all moot.
njoracle
Mar 18, 2017, 4:48:13 PM3/18/17
to
njoracle wrote:
> tar...@google.com wrote:
>> On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
>>> Arthur Rubin wrote:
>>>> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>>>>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>>>> from the modeling agency. I assume we cannot include the income on the parent's
>>>>> tax form using 8814 since this is earned income, not interest or dividends.
>>>>
>>>> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>>>>
>>> Using turbotax, there is no taxable income.
>>>> I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>>>
>>> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
>>> by the agency. Apparently, the clients pay the agency and the agency pays the
>>> child so the agency issues the 1099-MISC.
>>>
>>> If the child receives a 1099-MISC, he/she may also have to pay self-employment
>>> tax, although I don't think it helps his/her Social Security benefits. At
>>> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
>>> Security record. I'm sure the laws have changed somewhat since then....
>>>
>>> SE tax is $283, even for a 13 year old!!
>>
>> Don't forget that if you are filing a schedule C, you get to deduct expenses.
>>
>> At the least, it would seem that transportation costs could be deductible although that might require the child to reimburse the driver.
>>
> For each job, driver is his mother. Drives 40 miles into NYC so there are tolls
> and parking. Mom also buys lunch. I doubt if there was any reimbursement so it
> is probably all moot.
>
I stand corrected. There was reimbursement. All we have to do is assemble the
> tar...@google.com wrote:
>> On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
>>> Arthur Rubin wrote:
>>>> On Friday, March 17, 2017 at 9:01:05 AM UTC-7, njoracle wrote:
>>>>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>>>> from the modeling agency. I assume we cannot include the income on the parent's
>>>>> tax form using 8814 since this is earned income, not interest or dividends.
>>>>
>>>> A quick summary. As you noted, earned income is not subject to the "kiddie tax". Remember to calculate the standard deduction as earned income + $1000 (I think it's $1000 this year). (In other words, money _not_ subject to the kiddie tax, and less than the nominal standard deduction for a single person, is not taxable.)
>>>>
>>> Using turbotax, there is no taxable income.
>>>> I would think that a model should be an employee, rather than an independent contractor, as indicated by the 1099-MISC.
>>>
>>> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
>>> by the agency. Apparently, the clients pay the agency and the agency pays the
>>> child so the agency issues the 1099-MISC.
>>>
>>> If the child receives a 1099-MISC, he/she may also have to pay self-employment
>>> tax, although I don't think it helps his/her Social Security benefits. At
>>> least, _my_ employment before the age of 16 doesn't seem to be on _my_ Social
>>> Security record. I'm sure the laws have changed somewhat since then....
>>>
>>> SE tax is $283, even for a 13 year old!!
>>
>> Don't forget that if you are filing a schedule C, you get to deduct expenses.
>>
>> At the least, it would seem that transportation costs could be deductible although that might require the child to reimburse the driver.
>>
> For each job, driver is his mother. Drives 40 miles into NYC so there are tolls
> and parking. Mom also buys lunch. I doubt if there was any reimbursement so it
> is probably all moot.
>
documentation. sigh!
Bob Sandler
Mar 19, 2017, 1:53:29 AM3/19/17
to
>A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>from the modeling agency. I assume we cannot include the income on the parent's
>tax form using 8814 since this is earned income, not interest or dividends.
>
>Therefore, we will have to prepare a separate 1040 for the child. This appears
>to be straight forward but just wondered if there is anything special we need to
>be aware of in preparing either child's or parent's 1040?
Assuming the child is a dependent of his parents, make sure
>from the modeling agency. I assume we cannot include the income on the parent's
>tax form using 8814 since this is earned income, not interest or dividends.
>
>Therefore, we will have to prepare a separate 1040 for the child. This appears
>to be straight forward but just wondered if there is anything special we need to
>be aware of in preparing either child's or parent's 1040?
he does not claim an exemption for himself on his tax
return. Do not check the box on 1040 line 6a. Tax software
will typically have a box to check to indicate that he can
be claimed as a dependent.
Since he is a dependent, he does not report anything about
health insurance on his tax return. Whoever claims him as a
dependent reports his health insurance status on their
return.
Bob Sandler
njoracle
Mar 19, 2017, 12:45:04 PM3/19/17
to
Bob Sandler wrote:
>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>from the modeling agency. I assume we cannot include the income on the parent's
>> tax form using 8814 since this is earned income, not interest or dividends.
>>
>> Therefore, we will have to prepare a separate 1040 for the child. This appears
>> to be straight forward but just wondered if there is anything special we need to
>> be aware of in preparing either child's or parent's 1040?
>
> Assuming the child is a dependent of his parents, make sure
> he does not claim an exemption for himself on his tax
> return. Do not check the box on 1040 line 6a. Tax software
> will typically have a box to check to indicate that he can
> be claimed as a dependent.
>
> Since he is a dependent, he does not report anything about
> health insurance on his tax return. Whoever claims him as a
> dependent reports his health insurance status on their
> return.
>
> Bob Sandler
>
Thanks for the tip. Turbotax did leave 6A unchecked.
>> A child (under 16), earns income ($2000) as a model and receives a 1099-MISC
>>from the modeling agency. I assume we cannot include the income on the parent's
>> tax form using 8814 since this is earned income, not interest or dividends.
>>
>> Therefore, we will have to prepare a separate 1040 for the child. This appears
>> to be straight forward but just wondered if there is anything special we need to
>> be aware of in preparing either child's or parent's 1040?
>
> Assuming the child is a dependent of his parents, make sure
> he does not claim an exemption for himself on his tax
> return. Do not check the box on 1040 line 6a. Tax software
> will typically have a box to check to indicate that he can
> be claimed as a dependent.
>
> Since he is a dependent, he does not report anything about
> health insurance on his tax return. Whoever claims him as a
> dependent reports his health insurance status on their
> return.
>
> Bob Sandler
>
Arthur Rubin
Mar 19, 2017, 4:42:29 PM3/19/17
to
On Friday, March 17, 2017 at 1:59:18 PM UTC-7, njoracle wrote:
> The child goes to different clients (Magazine, TV, etc) on jobs which are set up
> by the agency. Apparently, the clients pay the agency and the agency pays the
> child so the agency issues the 1099-MISC.
This would suggest to me that the child should be an employee of the agency. But the entertainment industry _does_ have special rules.
> by the agency. Apparently, the clients pay the agency and the agency pays the
> child so the agency issues the 1099-MISC.
--
Arthur Rubin, AFSP, CRTP, Brea, CA
Stuart O. Bronstein
Mar 20, 2017, 8:28:10 AM3/20/17
to
Arthur Rubin <ronni...@sprintmail.com> wrote:
> njoracle wrote:
>
>> The child goes to different clients (Magazine, TV, etc) on jobs
>> which are set up by the agency. Apparently, the clients pay the
>> agency and the agency pays the child so the agency issues the
>> 1099-MISC.
>
> This would suggest to me that the child should be an employee of
> the agency. But the entertainment industry _does_ have special
> rules.
The real estate industry has special rules in the code. I wasn't aware
> njoracle wrote:
>
>> The child goes to different clients (Magazine, TV, etc) on jobs
>> which are set up by the agency. Apparently, the clients pay the
>> agency and the agency pays the child so the agency issues the
>> 1099-MISC.
>
> This would suggest to me that the child should be an employee of
> the agency. But the entertainment industry _does_ have special
> rules.
of special rules for the entertainment industry.
--
Stu
http://DownToEarthLawyer.com
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