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jlabw7
New Member

Doing my daughters taxes and she had a w2 for $34000 and she was getting $1020 back in federal. I key in a 1099 NEC for $13059 and she now owes $2287. any thoughts?

 
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2 Replies

Doing my daughters taxes and she had a w2 for $34000 and she was getting $1020 back in federal. I key in a 1099 NEC for $13059 and she now owes $2287. any thoughts?

Your daughter has self-employment income for which she has to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

 

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
PattiF
Expert Alumni

Doing my daughters taxes and she had a w2 for $34000 and she was getting $1020 back in federal. I key in a 1099 NEC for $13059 and she now owes $2287. any thoughts?

As xmasbaby0 mentioned, the 1099-NEC reports self-employment income. This triggers self employment taxes which cause your daughter to owe on her return. 

 

If she was self-employed, there may be expenses that she can use to reduce her taxable income.

 

Why did she receive the 1099-NEC? Sometimes the form is issued for something that is not considered self-employment.

 

Please see this Intuit article about stipend income.

 

 

 

 

 

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