topic 1099 misc in Get your taxes done using TurboTax

1099 misc

granpakavo — Mon, 10 Feb 2020 22:48:19 GMT

I am doing taxes for my grandson who is a college student and filing for first time He is a resident of Connecticut and had a paid internship last summer for which he received a W-2, paying Fed taxes but no CT taxes. He also received a 1099-Misc. for a part-time job in New York. I entered the 1099 information and it is generating a schedule C but he has no business expenses. Do I void the schedule C or use it and how if so.

Re: 1099 misc

VolvoGirl — Mon, 10 Feb 2020 22:51:08 GMT

The 1099Misc is for self employment income. He needs to fill out schedule C and pay the self employment tax on it.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit 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.

Re: 1099 misc

granpakavo — Thu, 13 Feb 2020 12:40:27 GMT

Yes, explanation was helpful.