My full time undergrad student son has received a 1099-MISC for Summer Internship stipend in an amount of $5,500 reported in box 7. His other income from work as a Teacher Assistant during the year was $470 reported on separate W-2. He is claimed as a dependent on our (his parents) federal return.
Two questions:
1. Does he need to file federal taxes?
2. If he does need to file federal taxes, here is the problem:
When we use "Income from Form 1099-MISC" section in Income Summary, Turbo Tax Premier calculates that he owes $585 allowing standard deduction of only $1,100. When we dig into worksheets, TT considers the $5,500 as "unearned income" which appears wrong.
If he does need to file taxes, could you please outline exact steps in TT to get the correct calculation?
Thanks,
M
