Thank you for your thoughtful answer.
The earnings are reported in box 2 (Royalties). I do believe it is self employement income. I do plan to do my homework on expenses that are allowed.
I think the reason people are passing it through to the child is because it minimizes the tax they have to pay. But hopefully the effort is worth the reward for them. In my case it does not seem worth it. I just wanted to be sure that I am not missing some guidance that I should be following.
