My children earned income under my business. How should I file a tax?

Question

I have a talent development agent businss. My children earned total of $1,500 under this business. Should I file tax as business income or children's income?

Answer 1

Did you withhold Social Security and Medicare taxes from their pay and cut W2s for them? If so, there is no need to file returns for them as their income is below the taxable threshold.

If you filed Form 1099-MISC for their income, you must file returns for them to pay the Self Employment tax on their income for each one that had more than $400.00 in Self Employment income.

Answer 2

I would file this under the children's income.