TP was awarded legal custody of brothers child(age 12) in June 2015. TP has a small yard mowing business.(sch c) TP paid and deposited into childs bank account $ for helping him in this business. Does the fact that this is not his OWN child preclude the fica rules. Tp has had 100% of the care of this child since being awarded the custody. Childs residence and schools records reflectsTP as legal guardian. TP has not legally adopted child. Only concern now is with the fica rules
-
-
I can't find anything that says they can be exempt from FICA.
ยง3121 and it's Regulation clearly says "in the employ of his father or mother". Maybe somebody else can find a Revenue Ruling, Court Case, or something else, but I haven't found anything that allows a guardian to replace a parent in this regard. -
FWIW I agree with the above reply. The child does not work for his parents, but rather for a custodial uncle (or aunt). The boy's wages are subject to all the same taxes as any other employee.Roland Slugg
"I do what I can."Comment
Comment