My son started a business in 2019 and set up to receive his payments via Paypal. Since he was under 18 he set up the Paypal using my SSN. I will be receiving a tax document from Paypal for the income they are reporting to the IRS referencing my SSN. What forms do I need to file with the IRS in order to transfer this income to my son and have him declare it on his taxes, not mine?
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To transfer the income from you to your son, you will need to issue him a 1099-MISC for the amount shown on your 1099-K. Be aware you will still need to file a TurboTax Self-Employed return to report the 1099-K income you have received and to show the nominee income (1099-MISC) for your son. He will also need to file a Self-Employed return to report his income and expenses from this transaction. If you are used to using TurboTax Online, you may wish to consider if there would be a cost savings to you by using the TurboTax Desktop/Download product to file both your returns.
The due date for the 1099-MISC is January 31. DO NOT miss this filing, as the penalties are significant for forms that are late or not filed at all.
To transfer the income from you to your son, you will need to issue him a 1099-MISC for the amount shown on your 1099-K. Be aware you will still need to file a TurboTax Self-Employed return to report the 1099-K income you have received and to show the nominee income (1099-MISC) for your son. He will also need to file a Self-Employed return to report his income and expenses from this transaction. If you are used to using TurboTax Online, you may wish to consider if there would be a cost savings to you by using the TurboTax Desktop/Download product to file both your returns.
The due date for the 1099-MISC is January 31. DO NOT miss this filing, as the penalties are significant for forms that are late or not filed at all.
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