asked

As a sole proprietor, I paid my children (ages 14 and 11) $2,000 each in 2020 for work related to my business and issued them 1099-NEC forms. I want to file tax returns for them to open Roth IRAs. How do I report their exemption from FICA taxes since they are employed by their parent's sole proprietorship, and how do I reconcile this with the requirement to file a tax return if their net earnings from self-employment are over $400?

December 25th, 2024

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