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Level 2
April 15, 2021
Question

where to report wages paid to a child under 18 from a parent sole prop.

  • April 15, 2021
  • 1 reply
  • 12 views

A parent paid his child $6,000 from a sole proprietorship.  The child is under 18, so no FICA or medicare tax.  Where should I report it?  If I put it on Schedule C and check the box for "not self-employed income" then the program only allows $1100 standard deduction and taxes the difference.  The $6,000 should be considered earned income for the standard deduction calculation.  I can't find where to override this.

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1 reply

sjrcpa
Level 15
April 15, 2021

It is a wage deduction on parent's Schedule C.

It is W-2 income on the child's 1040.

EDIT: Oh, I bet no W-2 was filed. Was a 1099-NEC filed? This is wrong.

 

The more I know the more I don’t know.
Level 2
April 15, 2021

Yes, a 1099-NEC was filed and the parent does not have an EIN, just a SSN.  

I don't see any way to e-file it as W-2 wages without an EIN.

I called support, they were no help at all.

PhoebeRoberts
Intuit Community Champion
April 15, 2021

Wages aren't reported on a 1099-NEC. Only wages are exempt from FICA taxes.

Parent needs to file a corrected 1099-NEC, get an EIN, and file a W-2.