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Child Photography Income / Roth IRA
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surpasspro:
I recently had a child and I was thinking about having them model for some stock photography images. I read that you can open a custodial Roth IRA account for your child and can contribute the child's earned income to the retirement account. Since I'm a sole proprietor I don't have to deduct payroll taxes and as long as they earned less than I believe $12,500K they don't have to file a tax return.
Has anyone done this before? If so how much do you pay them per photo session? I don't think I can just pay them $6k for one session to max out their contributions for the year. Thanks!
Sean Locke Photography:
Keep in mind you can only pay $600 until you have to send out a 1099.
Uncle Pete:
--- Quote from: Sean Locke Photography on June 20, 2022, 19:17 ---Keep in mind you can only pay $600 until you have to send out a 1099.
--- End quote ---
$600.01 but that's just the law. Over $600 must file a 1099.
Otherwise, aside from a 1 cent detail, good point!
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