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    mrterry77's Avatar
    mrterry77 Posts: 1, Reputation: 1
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    #1

    Sep 21, 2006, 09:09 PM
    Tax implications of 1099 income
    My son has had a paper route for the past 2 years and the income has always reported on his SSN as 1099 income. The newpaper company is changing policies and will no longer hire minors. If I put the route in my name and receive a 1099 for the income and the issue a 1099 to my son paying him the entire amount. What are the tax implications for me? i.e. - self employment tax, etc.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Sep 22, 2006, 04:38 PM
    That's one way to handle it. Your son would be considered a sub-contractor.

    Nothing wrong with it at all. You will have to file a Schedule C. Since all the money goes to your son, no sel-employment tax will be due.
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