Standard Deduction for 1099 NEC

Forum|Forum|3 years ago
May 1, 2023
5 replies
40 views

My child has about $10,000 reported in a 1099 NEC. That is her only income. But she is not getting the standard deduction in Turbotax Deluxe. There is no tax deducted in 1099 NEC, and Turbotax says she owes about $1500 Tax. Is this correct?

DoninGA

Level 15

Yes, that would be correct. She will not owe any federal income taxes since her income is less than $12,950. However, since the income was from self-employment she will owe Self-Employment taxes on her net self-employment income. The tax is 15.3% (includes both employer and employee Social Security taxes and Medicare taxes)

xmasbaby0

Level 15

The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $400 and the individual’s earned income (not to exceed the regular standard deduction amount).

If your child has self-employment income on a 1099NEC they owe self-employment tax for Social Security and Medicare.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

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

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**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.**

Karu1Author

Level 2

Thanks.

I am not claiming her as a dependent. I am only helping her with her own tax return.

Karu1Author

Level 2

Thanks, so if she has any job-related expenses, can she deduct those and pay lower tax? If yes in what schedule? Schedule C?

xmasbaby0

Level 15

Yes ----any business expenses can go on Schedule C. Caution--commuting to and from work is not an expense that can be entered. If your child drove during the work day for job-related reasons, that mileage can be entered.