1099-misc

[amfoley]

My college student daughter (22yo) received a 1099-misc for an internship she had over the summer of '22.  Of course no taxes were taken out.  This is her only income for the year.  Does she need to file a return and if so will she likely need to pay taxes?  I started on here return and its looking like she will owe a chunk of taxes.  Which may be correct, but just seems odd that if she were paid this money via a W2, I think she'd get whatever tax that was withheld - back.  Though I suppose she still would have paid some Soc.Sec. and other stuff.  Thanks!

[MayaD]

Your daughter can report the income as other income and she won't be paying self employment tax.

To enter form 1099-MISC:

1. Select Federal
2. Select Wages & Income 
3. Scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
4. Enter the 1099-MISC exactly as printed, and then Continue.
5. Enter the reason you got this money –
6. On the following screen, Select None of these apply, then Continue.
7. Select No, it didn’t involve work and Continue.
8. Select  the tax year for which this specific 1099-MISC was issued then Continue.
9. Select No, it didn’t involve an intent to earn money, then Continue.
10. Select No, then Continue.

For filling requirement check: Tax Filing Requirements for Children

[amfoley]

Thank you so much!!!  A relieve for sure!  I'll give it a try.  Wow, really, thank you!!

[amfoley]

I originally took your response to mean she would not need to pay any taxes.  That is not correct, right?

I think you meant she will not need to pay the "extra" self employment tax, but she still will be taxed?  Do I have that right?

Thanks!!

[JohnW152]

That's correct.

While your daughter won't be required to pay self-employment tax -- which amounts to Social Security and Medicare tax, like what you see taken out of your income on a Form W-2 as an employee -- the income will be considered taxable income for regular income tax purposes.