Income in support of daughter's skating

What is the name of your state? Michigan

My wife and I work volume services (concessions) at the local sports arena as arranged by our daughter's ice skating club. The sports arena shares the profits with the skating club which shares the profits with the workers. The income is kept in an account by the club that can only be used for my daughter's skating expenses at the club.

How should this income be reported? And how can I minimize taxes?

The skating club requests a SSN to report the income against. Some folks report the income against their daughter's SSN. I have also heard about some $600 limit???? I have even heard that some folks change the SSN they use every $600. I do not understand.

THANKS!!!!

The bottom line seems to be that you and your wife are being paid for services provided. Even though the amounts are deposited into a special account for your daughter, they are still considered as received by you.

Taxes should be withheld and each of you should receive a W-2 next year. Not sure what the $600 rule is.

If the skating club issues you a 1099-MISC instead of a W-2 next year, then any amounts over $400 will require you pay social security tax in addition to income tax.

You may want to find out exactly how they plan on reporting this income using your social security numbers.

Hope this good cause does not turn into a tax burden for you.