School requesting W-9 for minor

Submitted by SpentSquare t3_z8g5ec in personalfinance

My daughter (12) attends a public school that focuses on performing arts. Her art teacher complimented a piece of artwork homework and offered to sell it for my daughter. My daughter verbally accepted this offer and the teacher sold it at some local cafe for $10 some weeks ago. At no point were we as her parents consulted for this matter.

Today, our daughter came home with a W-9 from the school. I have a pretty simple tax situation: one W-2, simple investments and charity donations. I’m concerned this will complicate things and clearly isn’t worth the hassle for $10.

However, I want to encourage my daughter and treat her with dignity and respect. She is very talented and could sell more art (with or without the school’s assistance) if she chose.

Can someone give me the basics of minor income and if this is a big undertaking or not? Also, any advise on discussion with the school? Feels like I should have been consulted before they sold her homework.

Edit: Thanks for all the quick and helpful replies. I'll fill out the form and give her lots of positive encouragement!

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j____b____ t1_iybgaos wrote

This will not be a big deal. Donate the money to the school if you don’t want to fill it out.

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Its-a-write-off t1_iybgkjp wrote

This isn't a big deal, and doesn't affect your taxes. Your daughter won't have a tax filing requirement at 10.00 of income. You don't report the income on your tax return. It's a non event.

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key1234567 t1_iybi42s wrote

No biggie here. She will not be issued a 1099 unless she earns more than $600. Best thing about kids making earned income is the ability to contribute to a roth ira.

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SpentSquare OP t1_iybj29b wrote

Thanks for all the quick and helpful replies. I'll fill out the form and give her lots of positive encouragement! Thanks Reddit

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No_Tension_280 t1_iyble7y wrote

Then put a credit freeze on her account. Just in case!!!

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ahj3939 t1_iybolzw wrote

IRS requires the W9 and 1099 reporting for any payments totalling $600 or more during the year.

They could send one for less, but unless their accountant is trying really hard to milk them for every last billable minute most businesses won't report transactions that aren't required to be reported.

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zffch t1_iybqu72 wrote

> Can someone give me the basics of minor income and if this is a big undertaking or not?

Earned income works the same for minors as anyone else. If she makes over $433, she'll have to file a tax return and report it as self-employment income. Below that amount, no need to do anything. Under no circumstances do the parents report their child's earned income.

Unearned income like interest and dividends has some more complex rules, and in some cases the parents are allowed to report it on their own return rather than the child filing.

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