Tuesday, December 22, 2009

How would my teenage daughter pay income taxes for money from her website?

My 15 year-old daughter owns a website and she gets an income from Google Ads and an online store. What is the best way for her to pay her taxes? Should we join it with our family taxes or separate the two? The website if registered under my name but the online store is under hers. Thank you!How would my teenage daughter pay income taxes for money from her website?
If you go to a tax preparer to do your taxes, he/she may not want to (or be able to) do taxes for a small business. That was the trouble I had. So you have to find a different preparer.





Also since it's not wage income, there is no withholding, so you have to make quarterly payments with a 1040-ES (Estimated Tax) form. You can get these forms at the IRS web site. The formula for figuring out what you owe is complicated, so I just send in 1/5 of my income, and I usually get a refund at the end of the year. Your state may also require quarterly estimated withholding.How would my teenage daughter pay income taxes for money from her website?
You need to look with her store and adsense and see whose name and tax information that is under. If it is under yours, you can just file it as your income, but if it is her, she must file her own forms.





Hope that helps!
It's her income and it's self-employment income.

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