1099-NEC and 1098T question

Forum|Forum|11 months ago
April 6, 2025
1 reply
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My child is a first year college student and he worked for two different companies last year, he has one W2 and one 1099-NEC. My question is he is not self-employed and doesn't has a business. How does he report this since I got mixed answers. Some said Schedule C and which is self-employed and he isn't. Other said Schedule 1 under additional income. The two incomes together is less than $6000. Should he file his own income tax or I can file him under mine? Other also said because his total income is less than $14600, I don't have to report them. Is that true? He also got scholarship but not a full ride. Should I claim that 1098T since I did pay the balance of his tuition and room and board. Please help.

xmasbaby0

Employee

Why did he receive a 1099NEC? You say "he worked for two different companies"---which sounds like two jobs----one sounds like a W-2 job and the other one may have been work as an independent contractor. Sometimes people who receive a 1099NEC think they do not "have a business" but do not realize that the IRS considers them to be self-employed. Even $400 of self-employment income is required to be entered on a tax return----so please clarify why your child has a 1099NEC.

When you work as an independent contractor, you have to pay self-employment tax for Social Security and Medicare, even if you did not earn enough to owe "ordinary" income tax.

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-

business-expenses-like-home/L1k6HJY4A_US_en_US?uid=m6jrthmp

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-schedule-c/L5Fz3j5us_US_en_US?uid=m6a6gknk

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

dlp17Author

My friend has this company but she doesn't employ any employees. She just ask people if they have time to help on projects which are manual work. She only send people who helped/worked for her 1099. When my friend needs help and my child is free, he worked. He worked for about a month last summer.

xmasbaby0

Employee

@dlp17 So he was indeed an independent contractor. He got paid for working but no tax, no Social Security and no Medicare was withheld. He owes self-employment tax.