I paid my kid (5 years old) for practicing piano and performing in family gathering, as well as washing car for me, for a total of $550 in 2021. Should I consider him independent contractor or household employee? (I do not have a company of my own/ my family). I ask because I want to contribute Roth IRA for him and I saw online comment that even grandparent asking grandson to do laundry, the money can be qualified for Roth IRA. I do not understand how the grandparent file tax for the grandson then.. or do they even need to file tax for him?
In my case, if I do need to file tax for my kid, which form I should use? Many thanks for the advice..
