The 1099-NEC is reported under your social security number to you and the IRS so the IRS will be looking to reconcile that income on your return. You will therefore need to report it and then subtract it out as "dependent child income under Publication 929."
Since the amount is over $400 your son will need to file a return and claim the income and pay the taxes including self-employment taxes on the income.
First on you return enter the 1099-NEC under the "Wages & Income" tab, the "Other Common Income" topic. Enter the form info and for the description use "Dependent Child AdSense income." On the follow on page check "This is not income earned as an employee self-employed." Finish the topic interview and then go back to the "Wages & Income" tab.
- Scroll down "Less Common Income"
- "Show More"
- "Start/revisit" the "Miscellaneous Income" topic
- "Start/revisit" the "Other reportable income" topic
- Enter "Child Income Pub 929"
- Enter the amount as a "Negative number"
The 1099-NEC will then be entered as self-employment income on your son's tax return in the "Wages & Income" tab.
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