My daughter did a summer internship for which she got paid 7000$ on 1099-NEC. There is no other income of any sort. Now, if I do not claim any expenses against this 1099-NEC, then it forces me to enter Form 8615, it captures my name/ SSN but the tax liability is 0. However, if I go via Schedule C route then the tax due is 15%.
Now, I looked up whether she needs to file tax at all or can she skip it altogether, as she
(a) is 22 years old
(b) full time student in college
(c) I am not planning to claim her as my dependent on my tax form (as I do not meet the income criteria to get any child tax credit)
(c) has no other income of any sort
(d) no tax withheld,
(e) did not signup for health insurance from market place (she has it through me)
(g) not eligible for earned income credit
when I key in all the above information on IRS website, it says that "You are not required to file a tax return because your income does not equal or exceed $12,400, nor do you owe any special taxes or have any special situations that require you to file".
Do you have any recommendation?
(a) to file with Form 8615 (with 0 tax due)
(b) don't file the tax
Thank you,
