it would be accuate that there is no tax under $12,550 if these were W-2 wages, where social security and medicare taxes are withheld from the paychecks.
But on a 1099-NEC, those taxes are not withheld and the IRS still requires those taxes to be paid..... that is what your child is paying: the 'self employment' tax (social security and mediciare taxes( which is the same as it would be if it were a W-2. There is no 'income' tax.
