Hi, I'm 16 and I just opened my Roth.
Fidelity says earned income could be dog walking, babysitting and they said "even though you might not be asked, it's best to log any and all earnings, just in case."
What if my mom or Dad pays me for doing work? My neighbor asks me to do stuff and he pays me in cash but Ik that counts because I fixed his fence with my dad, fixed his TV.. etc etc.
Like my dad owns his own business and I'm not labeled as an employee legally but I do work with him (he has a company where he makes air fresheners and we deliver it to businesses who order.) and if I go with him, he slides me a $5-$20 bill. Would this count as earned income? Or what about my mom? If I sweep the house, clean the shelves etc and she pays me, is that earned income also?
I'm planning to use a spreadsheet that labels what came from what.
Posted by IncomeLongjumping401
4 Comments
Generally chores done around your own home are not earned income.
Payment for things you do for a business or a neighbor are earned income.
Yes, thats earned income.
[deleted]
It’s great that you are thinking about this stuff. But be sure to prioritize good friends, school work and hobbies such as sports, music, art, etc first. Money won’t mean much unless you have real connections.