While you see your daughter as employed, the Form 1099-MISC
tells the IRS that your daughter was paid as an independent contractor. Which means her income will be subject to
Self-Employment taxes, unless the total reported is less than $432.00.
She can always check with her employer about this, but if
the employer was withholding payroll tax, it is highly unlikely that they would
have mistakenly reported her “wages” on Form 1099-MISC instead of Form W-2.
You don’t report her income, even though you are reporting
her as your dependent.
Your daughter will
need to file her own return. Her income
will have to be reported as Self-Employment income
