1099 nec

[Bc321]

Hi I’m a dependent 19 years old sold tickets on StubHub think sold and got around $900 was wondering how I would do 1099 nec would it affect my parent income since they have heath insurance don’t want to put social security to accept the money if affect them?

[Anonymous_]

@TomD8 

[TomD8 · Accepted solution]

StubHub will issue you a 1099-K at year's end, not a 1099-NEC.  

https://support.stubhub.com/en/support/solutions/articles/61000276811-overview-of-1099-k-regulation

You must file your own tax return.  Your tax return will not have any effect on your parents' income, nor on your eligibility to be on their health insurance.  

On your return, be sure to indicate that you can be claimed as a dependent by someone else.

[Bc321]

So my parent can still claim me as a dependent?

[xmasbaby0]

If you are 19 at the end of the tax year, you can still be claimed as a dependent on your parents' tax return if your income during the tax year was less than $4300, or if you were a full-time student under the age of 24.

Here are the rules your parents use:

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2021 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,300 in 2021.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

• What does "financially support another person" mean?
• What is a "qualifying person" for Head of Household?
• Does a dependent for 2021 have to live with me?
• Do I qualify for Head of Household in 2021?
• Can I claim myself or my spouse as a dependent?

CAN I FILE A RETURN IF I AM A DEPENDENT?

If you can be claimed as a dependent on your parents’ return, you can still file your own return so that you can receive a refund of taxes withheld.  (You will not get back anything for Social Security or Medicare withheld.) Be sure that on your own return you say that you can be claimed as a dependent on someone else’s return.

https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

[Bc321]

Is there any good benefit for filing my own tax as a dependent since I have to pay taxes if I have 1099 k 

[xmasbaby0]

@Bc321 "good benefit?"   You have to obey the tax laws.  Your income will be reported to the IRS by the entity that issued the document, so the IRS will be looking for your tax return.

[Bc321]

I meant is it worth to file my 1099 k since I didn’t claim my money on StubHub by putting my social security in yet

[TomD8]

Not claiming your money just to avoid taxes makes no sense.  Would you take a job and then tell your employer not to pay you because you don't want to pay taxes?

[Bc321]

It’s cause if the process is complicated I don’t feel like doing the work also the ticket were gifted to me