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Minor's Business under my social security number
My son started a business in 2019 and set up to receive his payments via Paypal. Since he was under 18 he set up the Paypal using my SSN. I will be receiving a tax document from Paypal for the income they are reporting to the IRS referencing my SSN. What forms do I need to file with the IRS in order to transfer this income to my son and have him declare it on his taxes, not mine?
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Get your taxes done using TurboTax
To transfer the income from you to your son, you will need to issue him a 1099-MISC for the amount shown on your 1099-K. Be aware you will still need to file a TurboTax Self-Employed return to report the 1099-K income you have received and to show the nominee income (1099-MISC) for your son. He will also need to file a Self-Employed return to report his income and expenses from this transaction. If you are used to using TurboTax Online, you may wish to consider if there would be a cost savings to you by using the TurboTax Desktop/Download product to file both your returns.
The due date for the 1099-MISC is January 31. DO NOT miss this filing, as the penalties are significant for forms that are late or not filed at all.
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