Dependents Who Work
Your Child Wants to Get a Job. What Now?
If they are working at a preset location with preset hours, they are employees and you need to make sure their employer pays them as such. This means they need to fill out a W-4. They will only need to file their own tax return they are no longer a Qualifying Child or Qualifying Dependent, or if their employer taxes a Federal Income Tax Withholding and they want the refund.
Click here for more information on filling out the W-4 as a Single Dependent. Click here for more information on filling out the W-4 for a Full-Time Student.
If they are working from home or they can come and go as they please at the job location and they have flexible hours, they are independent contractors. This means they need to fill out a W-9. They will receive a 1099-NEC for their work at the end of the year. If they make over $400, they need to file their own tax return (they can still be claimed as a dependent and must report this on their return as well) and they will owe Self Employment Taxes on their net income. If they have business expenses, such as cell phone, internet, supplies, software, mileage, or work-related meals, you must track these to deduct them on Schedule C to reduce their net income.
For more information, please visit Sapling the numbers are several years old, so please reference the IRS for current data) .