It does appear your daughter is self-employed and subject to self-employment tax. She is also entitled to deduct any expenses she has related to her jobs.
Are you self-employed?
Sole proprietor, independent
contractor, consultant and freelancer are all terms used to describe
self-employed workers. Whether you do it full-time or on the side—if you’re an independent worker
like an Uber/Lyft driver, web designer, tutor, or babysitter—you’re
self-employed.
You may not think of yourself
as running a business, but you’re considered self-employed if you engage in
business-like activities.
Three key factors that
generally define an activity as a business:
- You
intend to make a profit (even if you operate at a loss).
- Your
activities are regular.
- You make
efforts to sustain or grow your business.
Situations where you wouldn't
be considered self-employed:
- You mowed
your elderly neighbor's lawn all summer, and he gave you money as a token
of his appreciation. (You didn't intend to make a profit.)
- You were
paid to tutor a friend's child, but you’re not going to do it again. (Your
activities are not regular.)
- You draw
for fun, and your friend paid you to create a poster for a birthday party.
(You're not making efforts to sustain or grow a business.)
When you’re self-employed,
you’re likely to receive a 1099-MISC or a 1099-K. Even if you don’t receive
these forms, you still need to report all your income from self-employment.
Related
Information:
Whether you received
a 1099-MISC for
self-employment, rent, royalties, fishing, or another reason, you can
enter the information by following these steps (or this link for our mobile app:(
- Sign in
to your TurboTax account.
- Select
the orange button Take me to my return.
- Type
“1099-misc” in the Search box.
- Select
the “Jump to” link.
- This will
take you to the 1099-MISC screen.
After you’ve entered the
information from your 1099-MISC, we'll ask a few questions to confirm the type
of income you received and create the necessary forms. If your 1099-MISC
income is from self-employment, we’ll help you enter expenses related to your
income.
The related
expenses are entered in the 1099 MISC section:
- Log into
your TurboTax online account and click on the Business tab and
select Continue
- Select
“I’ll choose what I work on” and this takes you to “Let’s gather your
business info” screen
- The
first section down is Business Income and Expenses, choose Update
- You are
now at the “Here’s the business info we have so
far” screen where you should see your Business listed
- Click Edit next
to that business and on the next screen, scroll down to the fourth section
which should be Business Expenses and select “Visit All
To add multiple IRS Schedule
Cs:
- go to
Business tab; then Continue
- choose
Explore on my own or I'll choose what to work on (if it comes
up)
- then
Business Income and Expenses
- then
Profit or Loss from Business, click Start or Update.
- you
should see the Business Summary page that lists your businesses,
- right
below the list you can Add Another Business.
