I have read numerous posts on how people are able to open a Roth IRA for their 5 year old because they have an earned income doing small things like working for the family business and dog walking etc... What I'm struggling with is do you need to then fill out a 1040ez and claim the income as Misc income? These articles never explain the whole process just the beginning part.
I'm interested in doing this for my 9 year old which he can do lawn work for the neighbors and dog sit when they are not home or on vacation. I was just curious on how the tax filing would work to prove that he is earning income to the IRS. I figure he could make around 500 for the year doing things so its not a huge amount but at least its a start.
Thanks for any advice.