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Student 1099 NEC

My son is a college student and received a W2 with $3400 in earnings and a 1099-NEC with $815 in door dash driver earnings during the school year as extra money. Last year my son only had a W2 and received a refund of what he paid in state/federal taxes. This year, with the W2 alone, the software shows he receives a $14 federal refund but  as soon as I enter the 1099NEC it comes back saying he owes $104 in taxes. Do I need to file an income tax return for him or report this  1099-NEC?  Being a student and earning so little, paying taxes on this seems unfair.

 

He didn't track mileage so is there a way to take a deduction for this to offset this?

Any suggestions would be appreciated.

Thanks

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4 Replies
JotikaT2
Employee Tax Expert

Student 1099 NEC

Yes, you will need to file an income tax return for him.  He does need to report the income as reported on his 1099-NEC.

 

A 1099-NEC is used to report non-employee compensation such as income from Door Dash. He is subject to self-employment taxes on his net income.  He can also deduct any expenses incurred with his deliveries.  I suggest contacting Door Dash to see if they maintain a log of deliveries he made.  You can then use that information to compute a standard mileage deduction to offset any of the income reported on his 1099-NEC form.  

 

Please see "What self-employed expenses can I deduct?" for more items that could be deductible to offset his income.

 

 

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Student 1099 NEC


@vze56v6x wrote:

 door dash driver 

 

He didn't track mileage so is there a way to take a deduction for this to offset this?


 

I think DoorDash does track many of the miles, so he should look at his online account to see what it says.  It is usually 'short' of what is actually allowable, but it is a good start.

 

If he has Google Maps on his phone and he allows it to track location history, he could go back and look at the days he drove to recreate the miles he drove for DoorDash.

Student 1099 NEC

I now gave mileage but how do i calculate the standard mileage? What is the cents

per mileage i should use?

JamesG1
Expert Alumni

Student 1099 NEC

For 2023, the mileage rate is 65.5 cents per mile. This amount increases to 67 cents per mile for 2024. For more information, refer to IRS Publication 463, Travel, Gift, and Car Expenses.

 

You report vehicle miles for your vehicle against self-employment income in your 1040 tax return.  You will be given the option of a standard mileage deduction or claiming actual expenses.

 

Vehicle standard mileage deduction may be entered against self-employment income by following these directions:

 

  • Down the left side of the screen, click on Federal.
  • Down the left side of the screen, click on Wages and income.
  • Scroll down to Self-employment.  Click the down arrow to the right of Self-employment income and expenses.
  • Click Edit to the right of the self-employment activity.
  • Scroll down the expenses and click Add expenses for this work.
  • Click the radio button to the left of vehicle expenses. Click Continue.
  • At the screen Here’s your xxx info, scroll down to vehicle expenses.  Click Start/Edit/Review to the right.
  • At the screen Vehicle Summary, click Edit to the right of the vehicle to be edited or follow the directions to correct or update the expense.
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