since this is earned income she has to file her own return and report the income and related expenses on schedule C. with online you need a separate a/c for her return.
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Start a New Return:
- Once you’re logged in, select the option to start a new tax return.
- Choose the appropriate tax year (e.g., 2023).
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Enter Your Daughter’s Information:
- Follow the prompts to input your daughter’s personal details, income, and any deductions or credits she may qualify for.
- TurboTax will guide you through each section, ensuring you complete all necessary forms accurately.
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Review and File:
- Double-check all the information you’ve entered.
- If everything looks correct, proceed to file the return.
- TurboTax will guide you through the e-filing process if applicable. Note that some situations may require mailing a printed copy of the return.
you don't need a 1099. when asked about receiving a 1099 answer NO. then you get to a section where you enter the gross proceeds she received. for her schedule C, you can also enter the expenses she incurred in doing the tutoring.
she will likely owe no income tax but net self-employment income above $400 is subject to SE tax which Turbotax will compute automatically.
To figure out your modified adjusted gross income (MAGI) take her adjusted gross income (AGI) and add back in any of the following deductions or exclusions if you took them (these are unlikely based on her age but just in case):
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Deduction for traditional IRA contributions.
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Deduction for student loan interest.
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Exclusion for foreign earned income and/or housing.
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Deduction for foreign housing.
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Exclusion for savings bond interest.
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Exclusion for employer-provided adoption benefits.
(Note: MAGI and AGI are the same amount for many people. See IRS Publication 590-A, Worksheet 2-1, for complete instructions on figuring MAGI for Roth IRAs.)
if you're the custodial parent you can claim her as a dependent. on her return the box that she can be claimed as a dependent must be checked.
