turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How can I claim my child as an employee?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies

How can I claim my child as an employee?

You don’t claim your child as an employee. You give the child a W-2 and the child reports the income on their own return if they make enough to have a filing requirement. 

KrisD15
Employee Tax Expert

How can I claim my child as an employee?

If you employed your child, you would have issued to them a W-2. 

Then, you would claim the wages and taxes paid as a business expenses. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How can I claim my child as an employee?

My child was under 18 years old in 2022. I was told that I could claim up to $12,000 for him as an employee in my sole-proprietorship and that I wouldn't need a W-2 because he was under 18. I was also told that the deduction could be in the form of goods and services. 

 

From the IRS website: "Payments for the services of a child under age 18 are not subject to social security and Medicare taxes. If the child is 18 years or older, then payments for the services of a child are subject to social security and Medicare taxes." (https://www.irs.gov/businesses/small-businesses-self-employed/family-help). 

 

What I'm trying to find out is where do I enter that into my filing in TurboTax? 

AliciaP1
Expert Alumni

How can I claim my child as an employee?

Your child was subject to income tax withholding as an employee, if you are a sole-proprietorship or both-parent partnership, regardless of age.  There is no up to $12,000 deduction allowance.  Therefore, you had to issue a W2 to your child and the amount in box 1 of the W2 is deductible as Wages.

 

Per the IRS:

Child employed by parents.

Payments for the services of a child under age 18 who works for their parent in a trade or business aren't subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they’re not subject to social security and Medicare taxes until the child reaches age 21. However, see Covered services of a child or spouse, later. Payments for the services of a child under age 21 who works for their parent, whether or not in a trade or business, aren't subject to FUTA tax. Payments for the services of a child of any age who works for their parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child isn't regularly employed to do such work.

Covered services of a child or spouse.

The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if they work for:

A corporation, even if it is controlled by the child's parent or the individual's spouse;

A partnership, even if the child's parent is a partner, unless each partner is a parent of the child;

A partnership, even if the individual's spouse is a partner; or

An estate, even if it is the estate of a deceased parent.

In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you.

 

@bradsims-gmail-c 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies