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I want to contribute to a Roth IRA for my 14 year old and 12 year old nephew and neice. They both work in the home which qualifies them under the earned income category, according to a person at IRS. My problem is that domestic work in the home for parents, under a certain limit, like $4,000 or something--is not subject to social security, workers comp, withholding, etc. Therefore, I assume no paperwork is required to send to the IRS to show them that they each earned $600 for the year. How would I prove to the IRS that they had earned income and therefore qualify for the Roth? I can't seem to get an answer from anyone. Everyone says, great question but has no answer! HELP!!
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