The one with income in box 7 is self-employment income. No ifs, ands, or buts about it. If it's more than $400, then he is required to file a tax return. The $6,350 requirement doesn't apply to self-employment income.
That's because with self-employment income, if it's more than $400 then he will pay self-employment tax on the amount over $400. Now he won't pay regular tax if it's under $6,350, but he will pay the self-employment tax if it's over $400. The SE tax is basically the employer contribution to his Medicare and social security account.
So answer these questions for me please, to determine how to deal with the box 3 1099-MISC income.
Is the box 7 1099-MISC more than $400?
Is the total of both 1099-MISC's more than $6,350?
Does he have any other reportable/taxable income not reported on a 1098-T box 5 or a 1098-Q? If he does, then it would not be scholarship money and would be reported to him on a W-2 if earned, and something like a 1099-INT or 1099-DIV if not earned Basically, does he have any income that you've not already made us aware of in this thread? (such as a student loan where the student is the *primary* borrower on the loan.)
