4H Club or FFA project. If an individual participates in a 4-H
Club or FFA project, any NET income received from sales or prizes related to
the project may be subject to income tax. Report the net income on line 21 of
Form 1040. If necessary, attach a statement showing the gross income and
expenses. The net income may not be subject to SE tax if the project is
primarily for educational purposes and not for profit, and is completed by the
individual under the rules and economic restrictions of the sponsoring 4-H or
FFA organization. Such a project is generally not considered a trade or
business. Reference: IRS PUB 225 Page 73 http://www.irs.gov/pub/irs-pdf/p225.pdf
If his total income, for the year, including the 1099-Misc, was less than $1050, he does not need to file a tax return at all.
