DaveF1006
Expert Alumni

Business & farm

it depends. If you paid your daughter $400 or more, I would suggest issuing a 1099 MISC so that she can report this. In fact, this is an IRS requirement that must be followed if self-employment income is more than $400.There will be no tax consequence since she is underaged and you can claim this as a contract labor expense. 

 

If you withheld taxes and sent to the IRS, then i would suggest filing a W2 so if your daughter files her taxes, she can receive that money back. Hopefully this is a guideline on which form to file.

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