Further question for Alan on IRAs on Self-employment Tax
Thanks for the quick response. I have another question.
[i]Your response:[/i]
With respect to the SS tax exemptions, a tax return must be filed when net SE income exceeds $400 with the following exceptions:
1) Children under 18 working in the family business
2) Children under 18 delivering newspapers
3) Certain exemptions for clergy or church employees
[i]My further question:[/i]
If children [u]under[/u] 18 working in the family business making over $400 do not have to file a tax return, then children [u]18 or older[/u] working in the family business making over $400 have to file a tax return. Doesn’t this apply only to self-employed persons? How can someone be self-employed and working in the family business?
Permalink Submitted by Alan Spross on Wed, 2012-06-20 04:28
You are correct. A child under 18 that is actually self employed must file if net SE income exceeds $400. There is an exception for newspaper carriers that are technically self employed.
The family business exception only applies to children treated as employees. I suppose the clergy and religious group exception could apply to children as well as adults.