Solved: How can i give them proof of income
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Returning Member

How can i give them proof of income

I have my own company and in Jan and feb I had few customers which my daughter and son was doing the job and I paid them 80% of the income. I’m going to file end of the year, how can i give them proof of income now as I’m planning to file 1099 end of the year so they can file taxes and i file for the company
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Accepted Solutions
Level 15

How can i give them proof of income

I assume you mean for 2020 and you will need to give your kids a 1099Misc? At the end of the year in January You will need to give a 1099Misc to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

 

If you use the Online version you will need to use the Self Employed version and Quick Employer Forms to prepare the 1099Misc.

 

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

View solution in original post

Level 15

How can i give them proof of income

You have no responsibility other than to issue them a 1099 at the end of the year.   What they need to show income for unemployment  is their own records of income received like deposits in a business checking account.  If they do not have such an account they may issue receipts for the payments and/or issue invoices/statements to you reporting the  payment.   Have them ask your state unemployment office for what proof they will accept if they did not file a Sch C last year. 

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5 Replies
Level 15

How can i give them proof of income

Who is "them"  and why do they need this information ? 

 

 

Level 15

How can i give them proof of income

It is not at all clear what you are trying to do.  Your  son and daughter cannot file tax returns for 2020 until next year in 2021, so why are they in need of something from you at this time?  If they worked for you during 2020 then in early 2021 you issue each of them a 1099Misc so they can use it on their 2020 tax return.

 

And not sure what you mean by your statement that you are going to file at "the end of the year. " The filing deadline for 2019 returns was July 15, unless you got an extension--in which case your deadline is October 15, 2020.  

 

Please explain in more detail what you are trying to accomplish.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15

How can i give them proof of income

I assume you mean for 2020 and you will need to give your kids a 1099Misc? At the end of the year in January You will need to give a 1099Misc to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

 

If you use the Online version you will need to use the Self Employed version and Quick Employer Forms to prepare the 1099Misc.

 

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

View solution in original post

Returning Member

How can i give them proof of income

Thank you so much, I used to pay them cash, technically they did all the work as i had full time job, they are trying to get unemployment as my company stopped and i closed it my customers business closed down so i have no more jobs to keep the company open, so the unemployment need verification, what can i give them?  

 

Thank you again for everyone answers

Level 15

How can i give them proof of income

You have no responsibility other than to issue them a 1099 at the end of the year.   What they need to show income for unemployment  is their own records of income received like deposits in a business checking account.  If they do not have such an account they may issue receipts for the payments and/or issue invoices/statements to you reporting the  payment.   Have them ask your state unemployment office for what proof they will accept if they did not file a Sch C last year. 

View solution in original post

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