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New Member
posted May 31, 2019 7:04:22 PM

My son received $12,000 from the sale of a 4-H youth project but he had $3000 of expenses. Does he need to file?

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1 Best answer
New Member
May 31, 2019 7:04:24 PM

Yes, he does need to file a tax return, if the 4-H youth project payment was in his own name and he "cashed" the check so to speak.

In other words, he's clearly over the minimum income filing limit (threshold).  This is true whether he is being claimed as a dependent on your own tax return, or if he is using his own personal exemption just as though he were an adult.

To verify these threshold amounts for yourself, please refer to the following (2) TurboTax FAQ pages below.  (Click on the see entire answer button if the full pages are not readily apparent.)

Finally, as a money saving tip:  if you plan to file multiple tax returns for a single household this year, you may be better off with the desktop software than with TurboTax online.  The reason is that you can prepare multiple tax returns through the same program, rather than paying for each return one-by-one in TurboTax online.

We wish your son continued good fortune with the 4-H!

https://ttlc.intuit.com/replies/3302274


https://ttlc.intuit.com/replies/3302185



[Updated 01-16-2017]

SuperUser macuser22 makes some excellent additional observations, inasmuchas this question pertains to 4-H income.  Thanks for the input!

2 Replies
New Member
May 31, 2019 7:04:24 PM

Yes, he does need to file a tax return, if the 4-H youth project payment was in his own name and he "cashed" the check so to speak.

In other words, he's clearly over the minimum income filing limit (threshold).  This is true whether he is being claimed as a dependent on your own tax return, or if he is using his own personal exemption just as though he were an adult.

To verify these threshold amounts for yourself, please refer to the following (2) TurboTax FAQ pages below.  (Click on the see entire answer button if the full pages are not readily apparent.)

Finally, as a money saving tip:  if you plan to file multiple tax returns for a single household this year, you may be better off with the desktop software than with TurboTax online.  The reason is that you can prepare multiple tax returns through the same program, rather than paying for each return one-by-one in TurboTax online.

We wish your son continued good fortune with the 4-H!

https://ttlc.intuit.com/replies/3302274


https://ttlc.intuit.com/replies/3302185



[Updated 01-16-2017]

SuperUser macuser22 makes some excellent additional observations, inasmuchas this question pertains to 4-H income.  Thanks for the input!

Level 15
May 31, 2019 7:04:26 PM

If he received a 1099-MISC with the income in box 7 then there are special rules for FFA/4H members so that the self-employment (SE) tax will not apply.

4-H Club or FFA project.   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Report the net income as “Other income” on line 21 of Form 1040. If necessary, attach a statement showing the gross income and expenses. The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Such a project is generally not considered a trade or business.

https://www.irs.gov/publications/p225/ch12.html