My child is <14yo, in my tax return as a dependent as of 2024. When my child eventually gets book published through KDP/Amazon, I imagine the sales will not be more than a thousand.
Whether it’s a business or hobby, I believe we parent will get 1099 for any sales as we, the parent, will be signing agreements with KDP. All 1099 need to be reported as “income”, big or small, correct? If you as the parent sign the agreement, then yes, the 1099 will come in your name. Then you could keep the income as yours since you are helping with the writing or you could issue the 1099 to your child by nominee
2- if we are not sure if the book-writing will become a business in the future, should we just keep it as a hobby and NOT to deduct the expenses at all (even after the book is published)? Yes, it is best to just keep it as a hobby for now since there is no way to predict the future when it comes to something like this.
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