Child's tip earnings?
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em_71
New Member

Child's tip earnings?

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?

3 Replies
MaryK1101
Expert Alumni

Child's tip earnings?

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_71
New Member

Child's tip earnings?

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)?

MaryK1101
Expert Alumni

Child's tip earnings?

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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