Do I need to issue a W-2 for my child?
Quick Answer
Yes, you must issue a W-2 to your child at the end of each year they work for you, regardless of how much they earned. The W-2 reports their wages and is required to: (1) file their tax return, (2) prove earned income for Roth IRA contributions, and (3) claim the FICA exemption if you're a sole proprietor. You must provide the W-2 to your child by January 31 and file Copy A with the Social Security Administration.
The Details
W-2 Requirements
As an employer—even of your own child—you must:
- Issue a W-2 to your child by January 31 of the following year
- File Copy A with the SSA by January 31 (or March 31 if filing electronically)
- Keep records for at least 4 years
What Goes on the W-2
| Box | Description | Typical Amount |
|---|---|---|
| Box 1 | Wages, tips, other compensation | Total wages paid |
| Box 2 | Federal income tax withheld | Often $0 (under standard deduction) |
| Box 3 | Social Security wages | $0 if FICA exempt |
| Box 4 | Social Security tax withheld | $0 if FICA exempt |
| Box 5 | Medicare wages | $0 if FICA exempt |
| Box 6 | Medicare tax withheld | $0 if FICA exempt |
Do You Need to Withhold Taxes?
Federal income tax: If your child earns below the standard deduction ($16,100 in 2026) and has no other income, you typically don't need to withhold. They'll owe nothing anyway.
FICA (Social Security/Medicare): If you're a sole proprietor or spousal partnership and your child is under 18, wages are FICA-exempt. No withholding required.
What This Means for You
Issuing a W-2 isn't optional. It's required. The good news:
- If your child earns under the standard deduction, they typically owe no tax
- The W-2 proves earned income for Roth IRA contributions
- Tools like employkids generate W-2 worksheets with all the data you need
Your CPA or tax software uses the W-2 data to file the actual form with the SSA.
Sources
- IRS Form W-2: Wage and Tax Statement
- IRS Publication 15: Employer's Tax Guide
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