Childs youtube income

[OpenMicDGZ]

The $189 that they are referring to is the cost of the online TurboTax Premium upgrade.  I'm guessing that you have to enter the 1099 MISC as 'royalties' under "Rentals, Royalties, and Farms" section of Turbotax.  When I go to that section to enter that info it tells me that I will have to upgrade to the Premium version instead of using TurboTax Deluxe.  (online) I am curious about the 1099 MISC since I read online that the copy you have to file with the IRS needs to be the printed one that you have to order through the mail because it is 'scannable' for the IRS (top page is printed in a red/black ink with carbon copies underneath for your child).  Is there no way to file this online? I'm wondering if I am going to have to print out my return and mail it in? I have always done E-file so this is new to me.

[DaveF1006]

No, you should be able to efile. You would only send in a copy of the 1099 MISC if you decide to print and mail your return. If you decide to efile, then it doesn't need to be sent in.

@OpenMicDGZ

[cqpkyo]

Hello DMarkM1! Does this still work for the 2023 tax return? Also, is it ok to use this even if I have a 1099-MISC? I will file a separate tax return for my child ( sched c). I tried doing the 1099-Misc route but after adding the negative amount turbotax won't remove the self-employed tax. Your method 1099-Nec doesn't add a self-employed tax as it have the the check button option "This is not money earned as employee or self-employed individual, it is from sporadic activity or hobby (this is not common) . Thank you in advance!

[PatriciaV]

For Form 1099-MISC, report this as "Other Income" on your tax return. 

1. Start in Federal Taxes >> Wages & Income >> Other Common Income >> Income from Form 1099-MISC. Click "Start" and work through the interview.
2. After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no."
3.  Check only the box for 2023 income. 
4. Then answer that this was not an "intent to make a profit." 

Those three answers should classify this as "Other Income", which will appear on Line 8 on Form 1040.

To offset this income, make another 1099-MISC entry with a negative value in Box 3 (equal to the income amount). The two entries will net to zero on Form 1040 Line 8.

@cqpkyo 

[cqpkyo]

Hi @PatriciaV ! Thank you for your reply! I didn't put in box 3 until now. That works. Thank you! Appreciate the assistance.