College student - received 1099-misc for summer intern work ($3,600) at local hospital (no W2 - no other income) - how to enter on TT

[Hal_Al]

It should be treated as self employment income, so that social security and Medicare tax are paid (since the "employer" didn't withhold those). 

In TurboTax (TT), enter at:
- Federal Taxes tab

 - Wages & Income

-Scroll down to:

   - Other Common Income

      -Income from Form 1099-Misc

Later check the box "Yes, it involved work like my main job"

Later, you'll enter more info at

- Federal Taxes tab

 - Wages & Income

-Scroll down to:

   - Business Items

      -Business Income and Expenses (Schedule C)

[KrisD15]

You can enter it as "Other Income" but if this is your only income, you may not need to file at all. 

Income

Other Common Income

Income from 1099-MISC

Enter the 1099-MISC

Type "Internship" for the reason

Select "None apply" for uncommon situations

Select "No, it didn't involve work like my main job"

Check received in 2022 only

Check "No, it didn't involve an intent to earn"

Continue and Done

This will make the amount taxable, but not treaded as Self-Employment Income. 

If your income is under the filing requirement, you will not need to file. 

[Hal_Al]

Filing it as "other income" is an option. It's the "one time gig" exception to it being treated as self employment income.  You avoid the self employment tax (about 15%). But, then it's treated as "unearned income".  The student is subject to the "kiddie tax" and his standard deduction and filing requirement is only $1150.  He still has to file and pay tax.  Depending on the details, probably about the same amount. 

[ah100]

Hello, I have a similar case where I received 1099 misc with box 3 for being a trainee in a lab. I was there for two years so I received two 1099 misc one for 2022 and one 2023. How should I file my taxes? thanks @KrisD15 

[MonikaK1]

If the Form 1099-MISC is for a summer internship only, you can enter it as described in the earlier post from last year by KrisD15.

To enter income from a Form 1099-MISC that is not from working, in TurboTax Online, enter Form 1099-MISC information in the section to which it most closely pertains. In Wages and Income, there are several locations where you can enter a Form 1099-MISC.

If you enter Form 1099-MISC in the Other Common Income section, at the screen "Does one of these uncommon situations apply?", a list of options appears from which you can select that includes reasons for Form 1099-MISC other than self-employed income.

In the alternative, you can enter the amount under Other Reportable Income. In TurboTax Online:

1. Go to Wages and Income
2. Scroll down to Less Common Income
3. Go to Miscellaneous Income
4. Select Other Reportable Income and follow the prompts. Enter a description for the reason for the payment.

See here for another discussion involving a similar topic.

[ah100]

Thanks for replying,

eventually it was covering living expenses as I am getting trained in a lab for two years not just summer knowing that I don’t have another source of income w any job.  Should I still proceed the same way?

thanks

[AbrahamT]

Absolutely.