Teen Home Health worker with 1099 NEC

Forum|Forum|1 year ago
April 9, 2025
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Last year I filed my teens taxes and paid her unemployment taxes since she was an independent contractor employed thru an agency (she was 17) the IRS months later sent her a check for the amount we sent in stating that she didn't owe unemployment because of her field of work and age. I am doing her taxes again this year on Turbotax and again she is required to pay unemployment tax. Am I missing something on the program? She is still my dependent. She made $6374 this year on line 1 of 1099 NEC. Any help would be greatly appreciated.

KrisD15

Unemployment and Self-Employment are two different things.

I think you Mean Self-Employment Tax which is FICA tax (Social Security).

What type of work is it that the IRS says it is exempt?

As far as I know, even when someone is 17, if they earn self-employment income, that income is subject to Self-Employment tax.

Can you give any additional details?

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davismom7Author

You are correct It is self employment - she worked for a home health agency and worked in a home that was not a family member. I am just confused why she was issued a refund for the amount we paid in self employment last year . Thank you!

Vanessa A

You may want to contact the IRS for more details on this. If there is some sort of exception that is not known or new, they can give you the details. If it is an error on their part, then you can get it resolved and be sure you are filing properly this year and next. I cannot find any type of exclusion, I can only find the opposite which is below. Additionally, home health workers are subject to SE taxes as well if they are not treated as an employee.

The only thing that could make sense is if the agency was not allowed to treat her as an independent contractor and they maybe paid their share of employment taxes. Does she have any taxes withheld from her pay?

Many students do odd jobs over the summer to make extra cash. Earnings you receive from self employment – including jobs like babysitting and lawn mowing – are subject to income tax.

If you have net income of $400 or more from self-employment, you will have to pay self employment tax. This pays for your Social Security and Medicare benefits, which are normally paid for by withholding from wages. The self-employment tax is figured on Form 1040, Schedule SE. Net income is the money you earned after any deductions are subtracted, such as business expenses.

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