Anonymous
07/20/2023 15:19
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
nope. 1300 not even close to filing limit
If you are going to open a Roth for your kid, you really need to know the actual tax rules.
If you only get a W-2, the filing threshold is $12,950.
If you are self-employed (earning any income, but not getting a W-2), you have to file taxes if you earn $400 or more.
Each source paying you $600 or more must give you a 1099.
If you are going to open a Roth IRA to enjoy the tax-free benefits of this investment, you better be following the tax rules and keeping docs to prove it.
So if that $1300 is from one source, you will need a 1099 to support it, plus a tax return.
https://www.irs.gov/newsroom/who-needs-to-file-a-tax-return
And there are various exceptions for different kinds of work (e.g. domestic employees, family employee, etc.).
Can you post a link that has a complete list of exceptions? Thanks!
Anonymous
07/20/2023 15:06
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
nope. 1300 not even close to filing limit
If you are going to open a Roth for your kid, you really need to know the actual tax rules.
If you only get a W-2, the filing threshold is $12,950.
If you are self-employed (earning any income, but not getting a W-2), you have to file taxes if you earn $400 or more.
Each source paying you $600 or more must give you a 1099.
If you are going to open a Roth IRA to enjoy the tax-free benefits of this investment, you better be following the tax rules and keeping docs to prove it.
So if that $1300 is from one source, you will need a 1099 to support it, plus a tax return.
https://www.irs.gov/newsroom/who-needs-to-file-a-tax-return
And there are various exceptions for different kinds of work (e.g. domestic employees, family employee, etc.).
Anonymous
07/20/2023 11:53
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
nope. 1300 not even close to filing limit
If you are going to open a Roth for your kid, you really need to know the actual tax rules.
If you only get a W-2, the filing threshold is $12,950.
If you are self-employed (earning any income, but not getting a W-2), you have to file taxes if you earn $400 or more.
Each source paying you $600 or more must give you a 1099.
If you are going to open a Roth IRA to enjoy the tax-free benefits of this investment, you better be following the tax rules and keeping docs to prove it.
So if that $1300 is from one source, you will need a 1099 to support it, plus a tax return.
https://www.irs.gov/newsroom/who-needs-to-file-a-tax-return
Anonymous
07/20/2023 11:33
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
nope. 1300 not even close to filing limit
Self employment income triggers a filing requirement at $400
Anonymous
07/20/2023 10:55
Subject: If your minor child has an IRA
Thank you all.. he is excited about his first earning and wants to invest in VGT.. super passionate about tech and ROTH seems best at this point
Anonymous
07/20/2023 10:04
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
nope. 1300 not even close to filing limit
Anonymous
07/20/2023 10:01
Subject: If your minor child has an IRA
Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
You can but they will have to file a tax return
Anonymous
07/20/2023 09:33
Subject: If your minor child has an IRA
Anonymous wrote:Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
Yes you can!
+1 absolutely
Anonymous
07/20/2023 09:32
Subject: If your minor child has an IRA
Anonymous wrote:My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.
Yes you can!
Anonymous
07/20/2023 09:26
Subject: If your minor child has an IRA
My 15 year old did some freelance coding work and earned $1300. Can I create a Roth IRA for him and contribute 100% of it? We do have the documentation to prove it.