Form 1099-MISC for a Summer Internship

[WGCev]

I have an issue. I am helping my child file her taxes. She did an internship in our state over the summer and then went back to school in New Mexico. She was paid 8,000. for 10 weeks, which was to help cover food, gas, etc. When she went back to New Mexico, she went back to her job as an in-home care giver, which is different than what she did over the internship. Her wages were under 12,000, and she is under 24. When we entered the information, it has her owing 2100.00 and has her as a self-employed business owner. It wants the name of her company and if she paid people wages, which she did not, and a business tax number. The internship co-incited with her studies at school, but not her job. I need to know how to correct this issue. If she owes some money, that's fine, but she is not the business owner. TT also wants her to upgrade to the business version. Any help is greatly appreciated. This is the first time we've had this issue.

[DianeW777]

It depends.  If the internship was initiated by the college and associated with her education, then it could be reported as 'Other' income which will remove it form the business income.  This will also eliminate the self employment tax (social security and medicare tax). Based on the details of your question, she did not intend to earn a profit or for this to become her livelihood.

It's important to keep any documentation such as her return to school and reasons for taking the internship. She will not need a business name or business tax number.  If you need to downgrade your TurboTax product use the link below.

• How do I downgrade to a different TurboTax Online product?

If she received a 1099, then delete that from the return, keep it with her tax records.  Next report the income using the steps below.

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section 
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

@WGCev

[Edited: 02/25/2025 | 6:14 AM PST]