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trumblehorn
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

My adult grandson made $756 doing online tasks (as an independent contractor) in 2016. He is declared as my dependent. Does he still have to pay Self Employment tax if I declare his income? Does he still have to file if I do? 

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Accepted Solutions
NewGuy
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

You cannot claim his earnings.  He is required to file his own return since he made more than $400 in self employment earnings.

This is from IRS Pub 501
Table 3.Other Situations When You Must File a 2016 Return

3. You had net earnings from self-employment of at least $400. (See Schedule SE (Form 1040) and its instructions.)
https://www.irs.gov/publications/p501/ar02.html#en_US_2016_publink1000220714


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6 Replies
fanfare
Level 15

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

"if I declare his income?" Why are you trying to defeat the tax system?
trumblehorn
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

I didn't mean it that way, not trying to short Uncle Sam,  it's just that the instructions on how to handle the earnings of a dependent seem to be different if they are self employed from they way it would be if they have an employer, but I wasn't really clear on that and didn't want to do the wrong thing
NewGuy
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

You cannot claim his earnings.  He is required to file his own return since he made more than $400 in self employment earnings.

This is from IRS Pub 501
Table 3.Other Situations When You Must File a 2016 Return

3. You had net earnings from self-employment of at least $400. (See Schedule SE (Form 1040) and its instructions.)
https://www.irs.gov/publications/p501/ar02.html#en_US_2016_publink1000220714


trumblehorn
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

Thank you for answering, and thank you for answering before midnight.
trumblehorn
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

I did a smile emoticon but it didn't show. Well, sending you a smile, thanks again!
NewGuy
New Member

Does my adult grandson who is my dependent made and $756 via self employment last year have to pay self employment tax even if I claim his earnings?

Your're welcome
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