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?
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
"if I declare his income?" Why are you trying to defeat the tax system?
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
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
Thank you for answering, and thank you for answering before midnight.
I did a smile emoticon but it didn't show. Well, sending you a smile, thanks again!