idk why but this whole thing of kids getting 1099s is wild to me. back in my day we just had lemonade stands 👴

Just to add some clarity here - yes your child can absolutely receive a 1099 at any age! Since they made $600 from content creation, whoever paid them should issue a 1099-NEC if it was from a single source. The key things to remember: 1) They'll need to file their own return since it's self-employment income over $400, 2) You can still claim them as your dependent, and 3) Definitely set aside money for taxes (self-employment tax is 15.3% plus regular income tax). Also make sure to track all business expenses - equipment, internet costs, etc. can be deducted!

Use TurboTax or FreeTaxUSA - they make it super easy to enter even tiny W-2s like this. Takes maybe 2 minutes and saves all the worry. I had a similar situation with a $45 W-2 last year and just entered it to avoid any headaches.

Just to add another perspective - I work in payroll and can confirm that employers are required to issue W-2s for any amount of wages paid, even if it's just $24.50. The lack of federal tax withholding is completely normal for such a small amount - the withholding tables are designed so that very low earnings don't trigger federal income tax withholding. However, as others have mentioned, you absolutely should report this income. The IRS receives copies of all W-2s electronically, and their automated matching system will flag your return if there's a discrepancy. Even though the actual tax impact might be zero (depending on your total income), omitting it could trigger correspondence that's way more hassle than just including it. Pro tip: If you're using tax software, it will automatically calculate whether this small amount actually affects your tax liability. In many cases, it won't change what you owe or your refund amount, but reporting it keeps you compliant and avoids potential issues down the road.

20 Just want to emphasize something important - if you're owed refunds for some years, file those ASAP! The deadline to claim refunds is only 3 years from the original due date. So for example, 2020 tax refunds (due April 2021) can only be claimed until April 2024. If you miss that window, the money is gone forever! Don't leave your own money on the table.

I'm a tax professional and want to reassure you that your situation is much more common than you think. The IRS deals with unfiled returns constantly, and they're generally reasonable with people who come forward voluntarily. A few key points to ease your mind: 1) Criminal prosecution for tax issues is extremely rare and typically reserved for cases involving fraud or significant tax evasion. Simple failure to file with W2 income doesn't usually rise to that level. 2) The "failure to file" penalty is actually waived if you're due a refund. So for any years where you're owed money, you won't face penalties - just potentially lose the refund if you wait too long. 3) The IRS has various first-time penalty abatement programs and reasonable cause exceptions that can help reduce penalties if you do owe. My recommendation: Start by requesting wage transcripts for all 5 years from the IRS website. This will show you exactly what income was reported. Then you can estimate whether you'll owe or get refunds for each year before filing. Don't let fear paralyze you further. The longer you wait, the more you risk losing refunds you're entitled to. The IRS wants to work with people who are making good faith efforts to get compliant.

Have you considered just paying for a clothing allowance and treating it as taxable compensation? We do this for our field technicians - give them a $500 annual clothing stipend that gets added to their W-2 as income. The company gets the deduction as compensation expense, and the employees understand it's taxable but still appreciate the benefit. This is much cleaner from an accounting perspective than trying to argue whether clothing meets the uniform test.

I'm dealing with a similar situation for my marketing agency! After reading through all these responses, I think the clothing allowance approach makes the most sense. We ended up giving our team members a $400 taxable stipend specifically for conference attire. What worked well for us was being upfront about it being taxable income and adjusting their gross pay slightly to help offset the tax burden. The employees appreciated having the flexibility to choose their own professional attire rather than being stuck with whatever we picked out for them. One thing I'd add - if you do go the clothing allowance route, make sure to document the business purpose clearly in case you ever get audited. We kept records showing which conferences required professional attire and how the clothing directly supported our business objectives. Our accountant said this helps justify the compensation as ordinary and necessary business expense. The IRS rules on clothing are frustratingly strict, but at least this way everyone's clear on the tax implications upfront and you still get your team looking professional at the conference!

Has anyone dealt with a situation where you owned a house together during the divorce process? We're selling our house as part of the divorce but it won't close until after we file taxes. Not sure how to handle this on my return if I file separately.

Just wanted to add another important consideration that hasn't been mentioned - if you're receiving any kind of spousal support or alimony payments during the separation, this can significantly impact which filing status makes the most sense financially. If you're the one paying support, you can deduct those payments when filing separately (but not if you file jointly). If you're receiving support, you'll need to report it as income regardless of filing status. This could push you into a higher tax bracket or affect your eligibility for certain credits. Also, don't forget about state taxes! Some states have different rules than federal, so even if you're required to file as Married Filing Separately for federal taxes, your state might have different options available. Worth checking with a local tax professional who knows your state's specific rules.