As I was reading, I thought self-employed income but then when I read DoninGA give that as an answer, I thought hobby income. So this is actually where we need to start. The IRS offer 9 factors to determine Earning side income: Is it a hobby or a business?
I don't believe the sale of one painting constitutes a business. I would call it sporadic income and not intended to provide expenses.
1. That said, the income would qualify for the ROTH, full amount.
2. No return is needed,
3 and 4 now irrelevant for hobby. As a business , you can contribute the full $800 when you file a tax return for the full $800. The income is not filed on the parent's return. See What is the Kiddie Tax?
Please read though the IRS link and think about your child. This may have been the start of a huge enterprise! I think for 2024, it is probably just some pocket money that was earned. Keep your records of the earned income, the ROTH, everything. Time to start a financial notebook for your little artist.
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