Can I declare my under 18 years old kid $12.000 salary on my sole proprietorship LLC under my SSN expenses or do I need to file a separate business return?

miosgit · ‎June 4, 2022

I have EIN for my company, but being a sole proprietor, I usually declare taxes under my SSN schedule C.
Can I deduct the salary paid to my kid in my schedule C, or do I have to file a separate tax return for my company?

Reading here:
https://markjkohler.com/paying-your-children-in-the-business/#:~:text=Here%20is%20the%20procedure%3A....

it seems that in the circumstances described, I can declare it as another simple expense (up to $12,550 and under 18 years old).

Thank you.

Critter-3 · ‎June 5, 2022

First ... on the Sch C you will have BOTH the company EIN & your SS# on the form so if you receive income or pay payroll taxes/issue 1099 under either they marry up to the one form.

Next, if you pay your child you can deduct the expense on the Sch C the same way as if you paid anyone else as an employee(W-2) or a subcontractor(1099) making sure to file the proper paperwork for each option timely.

AmeliesUncle · ‎June 6, 2022

I just read the highlighted area in the article, and there are errors in just the small section (you DO report it as payroll, and a you DO issue a W-2). So tread carefully with what you find on Google.

Can I declare my under 18 years old kid $12.000 salary on my sole proprietorship LLC under my SSN expenses or do I need to file a separate business return?

Business & farm

Business & farm