Title 26, Internal Revenue CodeRelease 119-110
§73 Services of Child
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter B — Computation of Taxable Income › PART II — ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME › § 73
Summary
Money paid for a child’s work must be counted as the child’s income, not the parent’s, even if the parent actually receives the money. Costs tied to that income are treated as the child’s expenses. "Parent" means anyone who has parental rights and duties. There is a rule that can let the tax agency tax a parent in some cases.
Full Legal Text
Title 26, §73
Internal Revenue Code, Source: USLM XML via OLRC
(a)Treatment of amounts received
Amounts received in respect of the services of a child shall be included in his gross income and not in the gross income of the parent, even though such amounts are not received by the child.
(b)Treatment of expenditures
All expenditures by the parent or the child attributable to amounts which are includible in the gross income of the child (and not of the parent) solely by reason of subsection (a) shall be treated as paid or incurred by the child.
(c)Parent defined
For purposes of this section, the term “parent” includes an individual who is entitled to the services of a child by reason of having parental rights and duties in respect of the child.
(d)Cross reference
For assessment of tax against parent in certain cases, see section 6201(c).
Reference
Citations & Metadata
Citation
26 U.S.C. § 73
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110