Q. Does my daughter have to file a tax return for the 1099-misc. ($1,000 box 3), if that is the only reportable “income” she had for year 2019?
A. No. The filing threshold, for a dependent with this kind of income is $1100*.
Q, Do I need to be concerned about the $1,000 scholarship when filing my tax return which will report the college issued 1098-T or can I disregard?
A. You can disregard. The $1000 was reported as taxable income, on a 1099-Misc. So, it is not classified as tax free scholarship. You may count your book & material costs when calculating your tuition credit.
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*If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2019 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,200.
- Unearned income (interest, dividends, capital gains, income in box 3 of a 1099-Misc) of more than $1100.
- Unearned income over $350 and gross income of more than $1100
- Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.200 if under age 18)
- Other self employment income over $400, including box 7 of a 1099-MISC
