Hi - 1099-NEC question... an 18 yr old earned $6,202.50 while working at a non-profit as a 1099 EE. When they filed their 1099-NEC, they were told they owed about $800-900 in taxes. Does that sound legitimate?
We've also had a minor who was attempting to file their taxes but was told that they were set up incorrectly and refused to include that child's 1099-NEC in their tax filing. I want to make sure that the tax preparing was wrong, unless our "contractor" set-up was set up incorrectly. We converted to a new payroll system on 1/1/24.
Thanks!
