1099-NEC Full time student, only income. Need to file taxes?

slara22 · ‎February 9, 2025

My son is a full time college student. He earned $2000 income in 2024 from a college job. He has no other job and no other income (no interests, dividents, etc).

He received a 1099-NEC for those $2000. Does he need to file taxes? And if so, can I include his income on my tax forms?

I thought that one needs to file taxes if one makes above a certain amount (~$14000 in 2025), which he clearly did not. I tried inputting the form on my taxes, but Turbo Tax says he is ineligible as the income was earned, as opposed to unearned.

Any clarity will be of great help! Thank you in advance.

VolvoGirl · ‎February 9, 2025

No you don’t report his income on your tax return. He has to file a return for the 1099NEC. 1099NEC is self employment income and you HAVE to file it on Schedule C and pay self employment tax on it. The SE tax is to pay both the Social Security and Medicare tax that wasn't taken out like on a W2 job.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

Be sure on his return he checks the box that says he can be claimed on someone else’s return.

DavidD66 · ‎February 9, 2025

Yes. Your son needs to file a tax return. No. You cannot include his income on your tax return. His earnings were reported on a Form 1099-NEC, which means it is self-employment income. He will have to file a tax return and report that income on Schedule C. If he has any expenses related to that income he can deduct them on Schedule C as well. His net profit, will be subject to self-employment tax, which basically is both the employee and employer's half of social security and Medicare tax. For information on how your son should file, see the following TurboTax article: How to File Taxes with IRS Form 1099-NEC

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slara22

Thanks for the response! Following-up: he is not self-employed, he is not doing any business and the money paid was for a one time college related job that ended (of course he might have another research or teaching income next year). I am finding contradictory info and want to double check:

Info A (from IRS table 2 filing requirements for dependents): dependents must file if gross income (earned + unearned) is larger than: $1300 OR larger than earned income +450. That would be $2450. Since he earned a total of $2000, he would not have to file.

Info B (IRS table 3 Other situations when you must file): must file if net earnings froms elf-employment are more than $400. He is not self-employed, but his earnings were $2000. He would have to file.

Which is correct? And do my husband and I still file him as our dependent as we pay for most of his expenses?

The taxes owed are not a problem, I just want to make sure we are doing the right thing. Thanks in advance!

BrittanyS

If the income was reported on a 1099-NEC, it is considered self-employed income even if he doesn't have a business. He would be considered a independent contractor which is treated the same as being self-employed. Since the income is considered self-employment income, he would not qualify as a dependent since his income was over $400. You would not list him on your return as a dependent and he would file his own return.

For more information, see the link below: