*I Live in Hawaii (for law/tax purposes) This is for year 2023.
Both children (ages 10 & 14) are doing lawn work for family members on weekends. The 14 year old is mowing the lawn with a non self-propelled push mower, and the 10 year old is raking all the cuttings. I'm keeping a spreadsheet log of all dates/task/duration/breaks/earnings/whose lawn.
They will not be getting a W2 or a 1099 for the income, as they are being paid in cash by each family member, per job. Their incomes will be roughly $2400.00 per child, per year. I want to start investing some of their earnings in a custodial ROTH IRA. In order for this to be considered "Earned Income", does a tax return NEED to be filed, even if its under $13,850?
Any advice would be appreciated. Thank you.
