Quote:
Originally Posted by Ungoliant
It's a bit of a stretch to say that's "completely legal" if it's obviously being done with the intent of getting around IRS rules (i.e. if the blog would have no reason to pay for child modeling otherwise and/or the rate being paid is ridiculously high and coincidentally exactly matches the Roth limit). Can you do it and most likely never be questioned about it? Sure. But in the event of an audit, claiming your infant is eligible for a Roth IRA because you posted their baby pictures on your personal blog is not likely to fly, unless you actually run a legit children's clothing blog or something.
That's why I said "by the book". I'm certainly not an expert on this, but I think as long as you're paying a market rate and there is a legitimate reason for the photo, I think you're OK even if audited.
There is a lot of material out there about how and when you can pay your kids to be "models", if you're really interested. And while I'm sure there are plenty of wrong ways to do it, I'm also sure there is a right way.
Also, FWIW, as far as the person I'm thinking about is concerned, he didn't get close to the limit for the modeling income. But even ~1K/yr starting from age 0 is nothing to sneeze at.