Child employed by parent , how to not have SE tax figured, Put on SE adjustment sheet?

[rbynaker · Accepted solution]

That's easy.  Parent puts the child's wages on a W-2.  Child reports W-2 income as wages on the 1040 line 1.

[TaxGuyBill]

As Rick says, a child that is EMPLOYED (employee) by a parent is not subject to Social Security and Medicare.

If the child is an Independent Contractor (which seems extremely unlikely) the child IS subject to SE tax.

[taxesbymetjr]

CHILD WAS 1099 OTHER INCOME , SO HAS TO BE WAGES OR WILL BE NOT AFFECTED BY STD DEDUCTION

[Just-Lisa-Now-]

They should NOT have been issued a 1099MISC as other income if they are working for their parents.

[taxesbymetjr]

Thanks, will inform client..