Dependent child's 1099-NEC

Forum|Forum|3 years ago
March 12, 2023
2 replies
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Shall I file my dependent's 1099-NEC and INT income on my return or shall I file her returns independently? When I tried it on Turbotax desktop version, it said, you may have to file with parents' returns. But when I tried to enter on my file, tax rate is quite high. Not sure what is the right approach? Could someone please help?

Best answer by AnnetteB6

If your dependent child has received income reported on Form 1099-NEC, you cannot include that income on your return. It will need to be included on your child's own return along with the Form 1099-INT that you mentioned.

Certain unearned income such as only dividends and interest may be reported on your return on behalf of your dependent, but earned income such as the Form 1099-NEC cannot.

In general, if the Form 1099-NEC income minus any applicable expenses are greater than $400, then a return will be required to be filed. Take a look at the following TurboTax help article to see the other income threshold amounts to verify whether or not a return is required to be filed for your dependent:

Do I need to file my own taxes if I'm a dependent?

AnnetteB6Answer

Certain unearned income such as only dividends and interest may be reported on your return on behalf of your dependent, but earned income such as the Form 1099-NEC cannot.

Do I need to file my own taxes if I'm a dependent?

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psk1Author

Thank you.

Opus 17

Employee

Sometimes, if a child's only income is interest and dividends, it can be added to a parent's return.

If there is any other kind of income, then all the child's income must be reported on a tax return in the child's name.

1099-NEC is generally self-employment income, such as being an independent contractor rather than an employee. Sometimes, payers use the wrong form. If you have concerns that your child was not self-employed, let us know more details.

13mmwoods

Dependent daughter worked as a summer camp counselor June-Aug 2022. She was paid $1200 but didn't know she'd be paid until the end of camp - she thought she'd probably just be volunteering. She received a 1099-NEC for the $1200. We claimed her as our dependent, but now don't know how to file this for her own taxes..HELP!

AliciaP1

She should technically report this as sporadic income on her own return for 2022, that she would mark she was claimed as a dependent by another person. If she has any expenses she may be able to claim against the income (see What self-employed expenses can I deduct? for help with these) she should report the income as self-employment income and deduct the expenses to reduce her tax liability.

If she has to report the income as sporadic income you can follow these steps to enter it into TurboTax Online:

Go to the Income & Expenses section of your tax return
Click Edit/Add for your form 1099-NEC
Input the details of your 1099-NEC and click Continue
Answer the questions and Continue until you get to the Does one of these uncommon situations apply? page
Choose This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common) and click Continue