Child's tip earnings?

[em_71]

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?

[MaryK4]

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.  

[em_71]

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]

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