I am a sole proprietor and paid my 20 year old dependent $500 to hang flyers and door hangers in 2024, can I list that as an expense? Where would I list that expense?

[DianeW777]

Yes, and your daughter must claim the income. You would list the expense as advertising.

If this was a hobby for you daughter, and if you did not pay her as an employee, she can report it as 'Other Income'.  If she is not in a business engaged in for profit, with regular and continued activity , then this would be the action to report the income on her tax return.

Please update here if you have more questions and we will help.

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

[chris272]

Does my dependent need to report the $500 if that was her only income for the year?

[ThomasM125]

If the income was considered self-employment income, as mentioned by @DianeW777, then a tax return would be required to report the income and pay self-employment tax. Otherwise, it would not be required, assuming the dependent was not otherwise required to file a tax return. 

[chris272]

Thank you!