A 12 year old son of a wealthy family is paid several hundred dollars per week for doing chores such as mowing the lawn, feeding the dog, etc. Should this child be required to file a federal tax return and report this income?
If it was less than $300, you don't have to file a tax return. At least that used to be the law.
The parents already paid tax for that household income.
Let the kid have his money. He'll have plenty of time to pay his taxes when he's older. I'm just glad he's doing something for the money.
If he files his own taxes, he's no longer a dependent (exemption) for the parents.
I tax my kid already...when hes in his heightchair, I take 2 puffs for every 10 I give him.
Unless they are apple flavored...than I take 4 and call them Capital Gains.
I'm sure Obama would want it but, No.
well he earns more than I do and I have to file taxes so...
Taxed as in income? As in employer/employee relationship? As in applying child labor, minimum wage, workers comp and other labor laws? I think not.
Why is it ok to tax employees if it isn't ok to tax this child?
Fine. Go ahead and classify him as an employee so you can have your equal application of laws. But then I want all labor laws to be equally applied as well. Including opening up the home to OSHA inspections.
I would prefer to be equally free from all that crap.
Yeah, well income taxes won't be going away any time soon. The best you can hope for is incremental wins such as keeping the parameters of "employee" as narrow as possible. Expanding it to include children's chores is the wrong move.
It probably depends on who is paying him. If he's earning the money around the neighborhood mowing lawns and whatnot, it's reportable. If it's an allowance from his parents, I don't think it is.
Shared, I like this question, I picked no, but really interested in the nation's verdict, if the kid kept the same routine for the same pay at the age of 20, Ooo then maybe compare that to 20yo who didn't do anything and dad just paid for everything
Thanks for the share! It's nice seeing more than 60 votes on one of my questions.
So if the kid was going to college, getting a "full ride" from his parents and getting the same $200 worth of spending money per month for chores, would your answer change to yes?
I don't know, I think if it comes from the parents, no, same as if he was 20, had a crippling world of Warcraft addiction, and his parents pitched in for his weed and Mountain Dew
No, taxes are overblown in this country as it is but that money is the property of the parents and was taxed already.
If the child in this example were replaced by a 40 year old working for a sole proprietorship, the money that they are paid would have been taxed already on the proprietor's return. So how is this different?
I agree. Except like most Americans I don't justify another wrong with one that already exists. "we already put Japanese people in internment camps why not these people too?" stop looking to what IS to justify what ISN'T.
No. It is an allowance.
If the parents were running a business and this was the child's earnings for working at the business, my answer would be different.
The child is a dependent. So it's not actual income. The money is staying in the family. Mom and Dad have already paid income tax on the money coming into the household.
If it totals the legal amount to have to file an income tax return. I think; it's like $600.00 or more a year. Not sure of the amount.
So if the kid is making $200 per month for doing chores they had better file a 1040?!
Not unless the kid hits the min for declaring income.
Yes. This isn't a discussion of whether taxes are right/wrong. It's about an instance within the current rules.
If the kid earns enough to hit the min, then like everyone else I don't see why he wouldn't pay, unless there is an age clause I forgot.
I can't see someone listed as a dependent on another's taxes getting taxed for getting money from them. I would need someone to explain again what a dependent is.
There's also that, it all depends on what the stupid rules are - which are all messed up to begin with.
The family is not s business from which the child is receiving pay. Unless it actually is a business and then the situation is different.
To those voting No, I would like to ask how does this senecio differ from a "normal" job?
It's not an official business. It's more akin to monthly allowance or a birthday gift.
It doesn't, income tax needs to disappear.
You read my mind rebel.