How do I file for my 4 year old daughter who works as a model? Does she need her own return, or do I file her on my return?

[blueangel_209]

She is considered self employed and represented by a modeling agency. She received a W-2 from one job she was contracted for, but other jobs we only have check stubs paid out to her from the agency.

[Vanessa · Accepted solution]

Yes, she needs her own return filed. You cannot report it on your return.  She will need to file a Schedule C to report the income from self-employment (the jobs you only have check stubs for) which will be the income not reported on the W2. You will be able to deduct the expenses associated with the income from self-employment but not the expenses for the income reported on the W2 since employee job-related expenses are no longer tax deductible. 

The checks will be entered as cash receipts.

You will need to use TurboTax Self-Employed online or Home and Business download.  If you use the download version you can file 5 federal returns for free, the state does have an e-file fee though. 

Note, if this money is used to provide MORE than half of her own support you cannot claim her as a dependent on your return.  If it is not used to provide more than half of her own support, then be sure that you answer that someone can and will claim her on their return.