Our LLC (taxed as partnership) paid my kids but if a dependent receives a 1099-MISC they do not have to pay self-employment if both parents are partners and they are. Turbotax does not ask this even though it handles my taxes.
How do I file a 1040X in TurboTax Premier if it doesn't even know this tax rule?
This is the IRS's rule:
"Child employed by parents. Payments for the services of a child under age 18 aren't subject to Social Security and Medicare taxes, if the business is a sole proprietorship or a partnership in which each partner is a parent of the child. Payments to a child under age 21 aren't subject to FUTA. Payments are subject to income tax withholding, regardless of the child's age.
Payments for the services of a child are subject to income tax withholding as well as Social Security, Medicare and FUTA taxes if they work for:
- A corporation, even if it's controlled by the child's parent, or
- A partnership, even if the child's parent is a partner, unless each partner is a parent of the child."
Source: https://www.irs.gov/newsroom/tax-treatment-for-family-members-working-in-the-family-business
Now, then, where in Turbotax can I find this so I can amend the return properly?
