Over the past year, my daughter began assisting me quite a bit. She was 17 at that time, so I started to pay her. I found online that as long as she is my child, under 18, and earns less than 6,000 annually, I could simply write her a check without needing to issue a W2. She just turned 18 at the end of last month, and although she hasn’t done any work for me yet, there are tasks on the horizon. What would be the best way to compensate her? She started college this year, and due to our income, she received a significant amount of FAFSA funds. I want to avoid jeopardizing that. She attends an expensive school that costs around 60K a year. Thanks to the FAFSA and her scholarship, we end up paying nothing. I’d like to maintain that situation.
i guess this may be a two part question….. thanks in advance for help.
Posted by mmnjack