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June 3, 2019
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Our dependent earned under $6,000 in 2016, employer gave him a 1099-misc, checked "non-employee" compensation. Does he have to file and pay tax?

  • June 3, 2019
  • 1 reply
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Best answer by Phillip1

Unfortunately, yes.

He will not have any income tax on this income, but he will have self-employment tax due (15.3% of the income, this covers social security and Medicare tax). When an employer reports wages on a Form 1099-MISC, the income is considered self-employment income by the IRS. The tax due from self-employment tax will be 918 dollars.

1 reply

Phillip1Answer
Employee
June 3, 2019

Unfortunately, yes.

He will not have any income tax on this income, but he will have self-employment tax due (15.3% of the income, this covers social security and Medicare tax). When an employer reports wages on a Form 1099-MISC, the income is considered self-employment income by the IRS. The tax due from self-employment tax will be 918 dollars.