1099-NEC Parents Income

[pennintr]

I'm a full-time college student and work as a landscaper in the summer, so I attained just over 10k of income before taxes last year. I am a dependant, but I pay for most of my tuition. When I was filing, the form asked for my parent's taxable income, and when I entered it my federal taxes went up an additional thousand dollars. Is this supposed to happen? My rate of over 18% federal taxes seems super high for a full-time student, and that puts me at over 22% income tax when I include my Michigan taxes. Do those rates sound right, and do I have to claim my parent's income?

[VolvoGirl]

You need to enter the 1099NEC as self employment income on schedule C.  Then it won't be affected by your parent's income.   Sounds like it got entered as Other Income and not earned income.  But you will have to pay self employment tax on it.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[Hal_Al]

A student dependent's unearned income  is taxed at the parent's marginal tax rate (the "kiddie tax").

Apparently you have entered your landscaping income as unearned income.  Since you have a 1099-NEC, instead of a W-2, that income should be entered as self employment income (schedule C).  That will classify it as earned income and you standard deduction will be enough that none of it will be subject to income tax. 

But you will be subject to "self employment" tax (SET). SET is how the self employed pay their social security and Medicare tax (about 14%)