My daughter's college is advising that she has to file a return for the year 2018. We thought our research determined she did not need to file. Her amount was $810.00 and she received a combined tax statement for non-employee reimbursement. However I can not find the correct schedule to file it on.
What was the source of the income? Interest, dividends, capital gains, withdrawal from an IRA or other retirement account?
Or did she have self-employment income reported on a Form 1099-MISC?
If her income from self-employment, reported in box 7 of 2018 Form 1099-MISC, is $433 or more, she was required to pay self-employment taxes. Her tax return would include at least Forms 1040 and 8965, plus Schedules 1, 4, C and SE for this. The other income would potentially be reportable elsewhere on the tax return.
Assuming that she is a dependent and the income received was Not from self-employment but was from unearned income, she would Not be required to file a 2018 tax return since her unearned income was $810.
IRS Publication 501, Dependents, Standard Deduction, and Filing Information page 4 - https://www.irs.gov/pub/irs-prior/p501--2018.pdf#page=4
Single dependents—Were you either age 65 or older or blind?
No. You must file a return if any of the following apply.
1. Your unearned income was more than $1,050.
2. Your earned income was more than $12,000.
3. Your gross income was more than the larger of—
a. $1,050, or
b. Your earned income (up to $11,650) plus $350.
It is listed on the 1099 combined form as non-employee compensation.
Not self-employment. Part time position that was listed as non-employee compensation on the 1099 combined form.
She was a dependent for that tax year and the 1099 combined form listed it as non-employee compensation.
@popinka wrote:
She was a dependent for that tax year and the 1099 combined form listed it as non-employee compensation.
There are almost two dozen different types of Form 1099. Which one did she receive, 1099-MISC, 1099-B, 1099-R, 1099-DIV, 1099-INT, etc.
A part time position does sound like Self Employment income. If she got a 1099Misc with the amount in box 7 that IS self employment. If she was an employee she would have gotten a W2 with taxes taken out.
Sorry she had to file schedule C for self employment income and pay the self employment tax. The SE tax is to pay the mandatory Social Security & Medicare taxes the employer did not take out. What kind of work was it? There might be an exception for babysitting income.
It was as an assistant coach for a volleyball club.
So - 1040 w/ Schedule C on Self-Employment. Is that correct?
Yes need schedule C for that. You need to pay self employment tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.