My two sons who are under 18, were asked to provide my wife's and my SSNs in order to receive payment. They informed us that when we filed for taxes we could report the income as a Nominee Recipient (as described by the IRS)..and pass along the income to our children. However, I'm not sure how to do this. I am using Turbotax for my taxes.
Thanks for your help!
To report the income reported on the Form 1099-NEC you will have to report it on your tax return on Schedule C as self-employment income. You will also report an expense for the same amount. As a result, your Schedule C will net to zero. You can report the expense as "Nominee Income" or Contract Labor. You will then issue your sons a 1099-NEC for their share of the income. They will need to file a tax return and report the income as self-employment income. You will also send a copy of the 1099-NEC to the IRS along with a Form 1096. There are also lots of options for fling Forms 1099-NEC online, including TurboTax. See How do I create W-2 and 1099 forms for my employees or contractors?