Your daughter must file a tax return because the income she received on her 1099-MISC is more than $400. The balance that she owes includes self-employment taxes on the 1099-MISC income. She'll report the income from her 1099-MISC income on Schedule C of her tax return. The IRS considers self-employment income as a business, so the good news is that she'll be able to deduct common business expenses from that income. To enter the business and self-employment income, follow the steps below:
- Open TurboTax
- Select Wages & Income
- Select Self-Employment Income and Expenses
- TurboTax will guide you through the interview screens to help you enter the income.
Review the TurboTax articles Reporting Self-Employment Business Income and Deductions for more information on business deductions. For additional information, review What self-employed expenses can I deduct? and How do I report income from self-employment?
Refer to the TurboTax article The Self-Employment Tax for an explanation of self-employment taxes.
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