Question

1099-NEC Non-employee Compensation income from a hobby Need to report

Forum|Forum|1 year ago
January 30, 2025
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My son received 1099-NEC Non-employee Compensation income from a hobby as a gift for helping, for an amount less than $6000. He is not self-employed. He is a student and does not have any other income. Since the amount is under the minimum threshold for filing taxes, does he need to file a tax return? Please advise.

S

Shannon B1

If he receives a Form 1099-NEC, he is considered self-employed for tax purposes. As a self-employed person, you need to report all the money you earn. If you make $400 or more, you'll likely need to pay self-employment tax. You can find more information in this TurboTax Help Article.

If the income is actually from a hobby, it should have been reported on Form 1099-MISC, not Form 1099-NEC. He would still need to file a tax return and report his income, but he wouldn't have to pay self-employment tax.