Child's tip earnings?

Forum|Forum|6 years ago
March 1, 2020
3 replies
44 views

In 2019, my 15-year-old son worked as a caddy at a golf course. He was only paid cash tips, so he was not a W2 employee. He was also not given a 1099-Misc as the club didn't pay him - members tipped him individually. He tracked his own cash earnings, which totaled $5300 for 2019. If his earnings are below $12,200, does he still need to file his own federal tax return? What about state? We live in NY but he caddied in CT. From what I've read, I don't think my husband and I can put his earnings on our tax return. I'm not sure if he has to file anything - can anyone clarify?

Tax Advice

MaryK4

Alumni - Intuit

Your son, even though he is only 15 is considered an Independent Contractor. He would have to file a Schedule C because he made more than $400 in tips. Unfortunately, he will have to pay self-employment (FICA - social security and Medicare) but there should not be any income tax due. You cannot include your dependent's income on your return unless it is unearned.

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em_71Author

Level 2

Thanks, that makes sense he has to pay the FICA taxes. Does he automatically now have to file state taxes too or do they have different minimums/rules (he lives in NY, did work in CT)?

MaryK4

Alumni - Intuit

No, because he only filed the federal return to report and pay the FICA, neither New York or Connecticut require that he files- this is based on his income amount.

@em_71

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