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miosgit
Returning Member

Can I declare my under 18 years old kid $12.000 salary on my sole proprietorship LLC under my SSN expenses or do I need to file a separate business return?

I have EIN for my company, but being a sole proprietor, I usually declare taxes under my SSN schedule C.
Can I deduct the salary paid to my kid in my schedule C, or do I have to file a separate tax return for my company?

Reading here:
https://markjkohler.com/paying-your-children-in-the-business/#:~:text=Here%20is%20the%20procedure%3A....

it seems that in the circumstances described, I can declare it as another simple expense (up to $12,550 and under 18 years old).

Thank you.
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2 Replies

Can I declare my under 18 years old kid $12.000 salary on my sole proprietorship LLC under my SSN expenses or do I need to file a separate business return?

First ... on the Sch C you will have BOTH the company EIN & your SS# on the form so if you receive income or pay payroll taxes/issue 1099 under either they marry up to the one form.

 

Next, if you pay your child you can deduct the expense on the Sch C the same way as if you paid anyone else as an employee(W-2)  or a subcontractor(1099) making sure to file the proper paperwork for each option timely. 

 

 

Can I declare my under 18 years old kid $12.000 salary on my sole proprietorship LLC under my SSN expenses or do I need to file a separate business return?

I just read the highlighted area in the article, and there are errors in just the small section (you DO report it as payroll, and a you DO issue a W-2).  So tread carefully with what you find on Google.

 

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