Dependent working

Forum|Forum|6 months ago
November 12, 2025
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If my teen is doing some light office work for my LLC for which I pay her 200 a week, where do I report this on my tax return and she is my dependent so I claim her on my return but does she have to report and pay tax on the income I’ve paid her?

Ask the Experts - Navigating - Oct 2025

Cindy4 12

Employee Tax Expert

You can deduct the wages paid to your child as a business expense on your Schedule C of your 1040 if you are reporting your LLC as a sole proprietor, which reduces your net business income and consequently your federal income tax and your Self-Employment (SE) tax.

If your LLC is taxed as corporation, it is reported as a deductible compensation expense on the corporate tax return (Form 1120-S or 1120).

You will either issue her a W-2 or 1099-NEC, and she will report that on her tax return. It may or may not be taxable depending on the amount. She will want to be sure to select that she is the dependent of another when she files her tax return.

Please see this helpful article for reference.

This is another very informative TurboTax Blog post regarding hiring your dependent child.

Hope this helps!

Cindy

Hope this helps!

Cindy

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