RaifH
Expert Alumni

Get your taxes done using TurboTax

Assuming you are claiming your daughter as a dependent, her Form 1098-T would be reported on your tax return. This will allow you to claim any education credits you may be eligible for. Given that she's 19, if she is otherwise eligible for the American Opportunity Credit and your household income is beneath the threshold, this can result in up to a $2,500 credit on your tax return.

 

The 1099-MISC income is for a summer program, which may require your daughter to file a tax return. If it is considered a grant, it is not considered self-employment income and would just be reported as earned income on her tax return. If this is the case, she would not be required to file because her earned income is beneath the threshold to file for a dependent. She can file to get a refund of any federal income tax withheld on her W-2. Her tax return would require TurboTax Deluxe because the 1099-MISC income needs to be reported on a different schedule than Form 1040. There is no longer a Form 1040-EZ. 

 

If it is a payment for work she did at the summer program, then it would be subject to self-employment taxes. In that case, she would be required to file and her 1099-MISC income is subject to the 15.3% self-employment tax. She would require TurboTax Deluxe to report this income unless she has ordinary and necessary expenses to deduct from her self-employment income. In that case, she would require TurboTax Self-Employed.