Do I Need to File a W2 for Paying My Child and Wages on Taxes?

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Discussion Overview

This thread centers around inquiries regarding the necessity of filing a W2 for paying a child for work and the implications for tax deductions. Participants express curiosity and seek clarification on the topic.

Discussion Character

  • Exploratory, Opinion-based

Main Points Raised

  • One participant asks if a W2 needs to be filed for their 17-year-old son, who was paid for work, to deduct his wages on taxes.
  • Another participant expresses interest in the same information, noting that their son also helps them and is compensated for his work.
  • One participant references a previous discussion on the topic, providing a link to another post for further context.
  • Another participant shares their disappointment in not finding the information they were looking for.

Areas of Agreement / Disagreement

No clear consensus emerges, as participants are seeking information rather than expressing definitive views.

Contextual Notes

The discussion reflects personal experiences and inquiries related to tax filing practices among participants who are likely consultants.

Who May Find This Useful

Consultants interested in tax implications of paying family members for work may find this discussion relevant.

J
jwpamp
Messages
1,614
Any CPAs or those who have had a professional do this before, could you respond? I love the thoughts of everyone, but would like to make sure I am doing this right....

Ok, I paid my 17 year old son to do work for me -- and kept good documentation.....do I need to file a W2 for him before I can take off his wages on my taxes?


TIA!
 
That is a very good question! And I am very curious to find this info too! My son helps me a lot, for which I pay him for, so I would like to know!
 
  • Thread starter
  • #4
TY Keri-Lyn!
 
Sorry guys....I didn't find this info out! :cry:
 

Frequently Asked Questions

Do I need to file a W2 for paying my child for work in my direct sales business?

Yes, if you pay your child $600 or more in a year for work performed in your direct sales business, you are required to file a W-2 form for them. This form reports their wages to the IRS and is necessary for tax purposes.

What are the tax implications of paying my child for work in my Pampered Chef business?

When you pay your child for work, their earnings may be subject to income tax, but they may not be subject to Social Security and Medicare taxes if they are under 18 and working for a parent-owned business. However, you should still report their earnings on a W-2 form.

Can I deduct my child's wages as a business expense?

Yes, you can generally deduct your child's wages as a business expense if the work is legitimate and necessary for your direct sales business. Make sure to keep accurate records of the work performed and the payments made.

What if I pay my child less than $600 in a year?

If you pay your child less than $600 in a year, you are not required to file a W-2 form. However, it is still advisable to keep records of the payments and the work done for your business.

Are there any specific age requirements for hiring my child in my business?

Yes, there are age requirements that vary by state. Generally, children under 14 may have restrictions on the type of work they can do, while those aged 14 and older can work more freely. Be sure to check your local labor laws to ensure compliance.

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