@NCperson
Thanks for the reply.
In 2019 my dependent student made about $3000 and received 1099-MISC - when we files taxes, the Std Deduction became $3350 because she made more than $750. So with Std Deduction of $3350 she ended up owing $32.
In 2020 she made $3400 doing the same type of part time work and received 1099-NECs instead. I selected NO Expenses option so that it did not generate the schedule C. (I have done this several different ways by deleting forms) This year, she has $3400 in 1099-NEC income. Turbo Tax calculated a Std Deduction of $1100 because Earned income is under $750. So with $2300 income she now owes $400+.
Quite dramatic when you look at 2019 and 2020 side by side. With 1099-NECs not counting as earned income which triggers the $1100 std deduction.
Was this the intent of the tax law changes from MISC to NEC? The work is the same, the pay is the same but in 2019 it was earner income and in 2020 it is unearned income.
