- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
I don’t follow. Didn’t you say that Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home?
Since this is for domestic work in the parents home, the child does not have to pay taxes, even if it’s $6,000 a year. But you’re now saying the parents have to issue a W2 or a 1099 NEC? Doesn’t doing this require a tax to be paid since the domestic work is now official earned income? I thought domestic work doesn’t need a 1099 or W2? How do one even issue a 1099 if you don’t own a company?
March 2, 2021
12:08 PM