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March 16, 2023
Question

1099 NEC

  • March 16, 2023
  • 1 reply
  • 0 views

The person my daughter worked for sent a 1099-NEC form for her wages which were $10,386

She is a college student and does not have a business.

I found the following online:  In 2022, for example, the minimum for single filing status if under age 65 is $12,950. If your income is below that threshold, you generally do not need to file a federal tax return.

Does she need to pay taxes?

    1 reply

    Employee
    March 16, 2023

    Yes, indeed she does need to file and pay, because she has self-employment income.  She will have to pay self-employment tax for Social Security and Medicare.

     

     

    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/questions/2902389-why-am-i-paying-self-employment-tax

    https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

     

     

    https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

     

     

     

    MY DEPENDENT HAD A JOB

    If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

     

     

    If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.

     

     

    You might also want to use free software from the IRS Free File versions:

    https://apps.irs.gov/app/freeFile/

     

     

    **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.**