## Quick Answer

To prove your child's earned income for a Roth IRA contribution, you need: (1) a written **employment agreement** establishing the work relationship, (2) **work logs with timestamps** showing when work was performed, (3) **payment records** like bank transfers or checks (not cash), and (4) a **W-2** reporting wages at year-end. The IRS requires **contemporaneous documentation**, meaning records created when the work happens, not reconstructed later. A spreadsheet filled in at tax time is not sufficient.

## What You Need to Prove

When the IRS (or your custodial Roth IRA provider) questions a contribution, they want to see:

1. The child performed real work
2. They were paid for that work
3. The payment constitutes earned income

## The Documentation Package

### 1\. Employment Agreement

A written document establishing the employment relationship:

- Job title and duties
- Pay rate
- Start date
- Signed by parent (employer) and child (or parent on child's behalf)

### 2\. Work Logs with Timestamps

Records of each work session showing:

- Date of work
- Hours worked
- Tasks performed
- **Server timestamp:** Proof the record was created when work happened

**Critical:** A spreadsheet filled in at year-end is NOT contemporaneous. Server-timestamped records (like those from [employkids](/content/site-root.html)) are far more defensible.

### 3\. Payment Records

Evidence that you actually paid your child:

- Bank transfers (recommended)
- Checks (keep copies)
- Venmo/Zelle/PayPal (creates paper trail)

**Avoid cash:** Cash payments are very hard to prove. Use traceable payment methods.

### 4\. W-2

The official tax document reporting wages paid. This is what ties everything together—it's the official record the IRS and brokerage firms accept.

### 5\. Roth IRA Contribution Memo (Recommended)

A document that connects the earned income to the Roth IRA contribution. Includes:

- Child's total earned income for the year
- Roth IRA contribution amount
- Confirmation that contribution ≤ earned income

## Why "Contemporaneous" Matters

The IRS specifically looks for records created **at the time of the event**, not later. Here's why:

- **Spreadsheets** can be edited anytime, with no proof of original creation date
- **Server timestamps** prove when a record was entered and can't be backdated
- **Reconstructed records** at year-end look suspicious and are easy to challenge

If you're ever audited, "I made this spreadsheet in January" is much weaker than "Here are server-timestamped entries from each day they worked."

## What Brokerages Want

When you open a custodial Roth IRA, most brokerages ask for the source of earned income. Common acceptable answers:

- Wages from family business
- Self-employment (babysitting, lawn care)
- Household employment

They typically don't ask for documentation upfront, but you should have it ready in case they ask—or in case the IRS questions the contribution.

Learn more: [How to Document Paying Your Kids: The Complete Checklist](/content/guides/document-paying-kids/index.html)

## Sources

- [IRS Publication 590-A](https://www.irs.gov/publications/p590a): Contributions to Individual Retirement Arrangements
- [IRS Recordkeeping](https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping): What Records to Keep