Can a non-W2 compensation of a minor be used to fund their Roth IRA?

I have two minor children who work. One has a regular W2 job, so she can contribute to a Roth IRA up to the amount earned. However, my other daughter primarily babysits. She earned about $1,000 this year. Obviously this is not a traditional wage in the W2 sense. However, is this compensation still eligible for her to start up and contribute to a Roth IRA? I've read the IRS definitions of compensation for IRA's but am still unclear.

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September 2017
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Surprising that there were some who answered "No" - this is incorrect.  She CAN use cash income from babysitting as long as she files a tax return and reports the income.  There is no requirement for a child to report this level of income, but you may choose to do so just for the purpose of demonstrating income for funding the Roth.  

 

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