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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Paying my kid Date: 2/21/2000 9:59 AM
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<<As a sole prop can I pay my 11 year old to clean my home office and deduct it as an expense on my schedule C?>> long as what you pay your child is legit, and the child performs real services.

<< If I pay her less tha $600 does she have to file a return and do I have to issue a 1099?>>

In order for this gambit to work, you'll need to begin actual payroll. The 1099 method won't work at all. If you want to take advantage of this, you've got to walk the walk. Simply writing the kid a check won't cut it.

<< If I pay here more are there tax advantages?>>

Yes...potentially quite a few. Read my article in the Taxes FAQ area about putting Jr. on the payroll for additional thoughts, requirements, and suggestions.

TMF Taxes
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