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I own an LLC sole proprietor. How do i report that I paid income to my children? I paid them the max allowed. I dont see where to enter this.

 
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DawnC
Expert Alumni

I own an LLC sole proprietor. How do i report that I paid income to my children? I paid them the max allowed. I dont see where to enter this.

According to the IRS, if you are self-employed or own a business, you can employ your child and deduct their wages as a business expense which in turn reduces your taxable profit.    A single member LLC is reported on Schedule C of your personal 1040.  

 

Where do I enter self-employed business expenses?   In TurboTax Online, the expense category is Employee Wages.  In TurboTax Desktop Home & Business, the category is Employee Expenses.  

 

Employing Your Children in Your Business

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