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Self employed
No, the 1099-NEC (Non-Employee Compensation) can only be reported as Self-employment income.
The main reason is that the internship does not go through the hassle of establishing you as an employee, so does not pay your FICA (Social Security) tax.
Your "Self-Employment tax" is the FICA tax you would have had withheld had you been paid as an employee.
You do pay both halves (Employer and Employee) but you get a credit for half, so it ends up the same as if you were paid with a W-2.
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‎April 13, 2024
3:59 PM