My teenage daughter received a 1099-NEC for some contract work that she did for my wife's employer. This $2,200 was her only income and I understand that she needs to file her own return and pay self-employment tax on it. Question #1 - Can I report on my tax return? I started filling out the forms for her, but it seems like overkill to be completing all these forms for this small piece of income (Form 1040, Schedule C, Schedule SE, Schedule 1 and Schedule 2). Question #2 - Are these the standard forms that need to be completed in this situation? Thank you!
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Question #1 - No you cannot enter her income on your tax return
Question #2 - Yes, those are standard forms for reporting self-employment income.
No, she needs her own return. And yes, they are all forms in TurboTax. If you enter the 1099-NEC on her own return, TurboTax will complete the Schedule C, Schedule SE as well as Schedules 1 and 2. All she needs to do is answer a few questions. She can use her name and home address for the business info, and she does not need an EIN. It is not as complex as it may seem. She can also deduct expenses to reduce her tax.
How does a side job affect your taxes?
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