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Childs youtube income

Forum|Forum|4 years ago
January 23, 2022
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My 17 year old earned around 4000 last year on youtube. The AdSense account is under my name and social because you have to be 18 so the 1099 will be assigned to me. How do I transfer the income to him so he can claim it on his own return. I've seen many post saying that since its under my SSN it is my income, but in tax pub 929, tax rules for children it says,

"Child's earnings.

For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. This is true even if, under state law, the parent has the right to the earnings and may actually have received them."

So there must be a way. Can anyone help?

Best answer by DMarkM1

The 1099-NEC is reported under your social security number to you and the IRS so the IRS will be looking to reconcile that income on your return. You will therefore need to report it and then subtract it out as "dependent child income under Publication 929."

Since the amount is over $400 your son will need to file a return and claim the income and pay the taxes including self-employment taxes on the income.

First on you return enter the 1099-NEC under the "Wages & Income" tab, the "Other Common Income" topic. Enter the form info and for the description use "Dependent Child AdSense income." On the follow on page check "This is not income earned as an employee self-employed." Finish the topic interview and then go back to the "Wages & Income" tab.

Scroll down "Less Common Income"
"Show More"
"Start/revisit" the "Miscellaneous Income" topic
"Start/revisit" the "Other reportable income" topic
Enter "Child Income Pub 929"
Enter the amount as a "Negative number"

The 1099-NEC will then be entered as self-employment income on your son's tax return in the "Wages & Income" tab.

DMarkM1Answer

The 1099-NEC is reported under your social security number to you and the IRS so the IRS will be looking to reconcile that income on your return. You will therefore need to report it and then subtract it out as "dependent child income under Publication 929."

Since the amount is over $400 your son will need to file a return and claim the income and pay the taxes including self-employment taxes on the income.

First on you return enter the 1099-NEC under the "Wages & Income" tab, the "Other Common Income" topic. Enter the form info and for the description use "Dependent Child AdSense income." On the follow on page check "This is not income earned as an employee self-employed." Finish the topic interview and then go back to the "Wages & Income" tab.

Scroll down "Less Common Income"
"Show More"
"Start/revisit" the "Miscellaneous Income" topic
"Start/revisit" the "Other reportable income" topic
Enter "Child Income Pub 929"
Enter the amount as a "Negative number"

The 1099-NEC will then be entered as self-employment income on your son's tax return in the "Wages & Income" tab.

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L

lauactuary

My child's youtube income is not reporte in 1099-NEC but in 1099-MISC. There is no place for a 1099-MISX in turbotax to check "This is not income earned as an employee self employed". The only options are Investment income from property you own, or royalty income from your business, and in this case it takes you to the self employed section. How should we report it?

DoninGA

@lauactuary wrote:

My child's youtube income is not reporte in 1099-NEC but in 1099-MISC. There is no place for a 1099-MISX in turbotax to check "This is not income earned as an employee self employed". The only options are Investment income from property you own, or royalty income from your business, and in this case it takes you to the self employed section. How should we report it?

After completing entry of the Form 1099-MISC, on the following screen Does one of these uncommon situations apply? Check the box None of these apply. On the next screen click on No, it did not involve work like (name's) main job. Then just follow the interview and select the option it did not involve an intent to earn money (if that is true) and complete the interview.