1099 from sports organization to support kid playing sports

[sportsmom1]

My child received a 1099 from a national sports organization for quarterly grants to support his adaptive sports (he is disabled). So last year he filed as self-employed but I set up a business in my name since I was going to help him with taxes. How should he handle this and what if he wins some money (usually like $25-$75) from winning a tournament. That is reported as income, correct even though we don't get any paperwork...

[JamesG1]

$25-$75 may not meet the filing requirement for filing a Federal 1040.  See IRS Publication 17, page 8 which states:

You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). 

Also, you must file Form 1040 or 1040-SR and Schedule SE (Form 1040), Self-Employment Tax, if: 

1. Your net earnings from self-employment (excluding church employee income) were $400 or more.

[sportsmom1]

He receives about $8000 a year in grants so I was wondering if since he is now 'self-employed' 1099-NEC if those winnings need to be reported as income for his sports career 'business'.

[ThomasM125]

Yes, the winnings are associated with the business activity so they should be reported along with the $8,000 as business income.

[sportsmom1]

Thank you. And can I still use my business that I created to report his winnings since he gives them to me to use for him playing the sport? Then I pay taxes on them and write off what I spend for his sports and he just pays taxes on his grant? 

[RobertB4444]

That's just fine.

@sportsmom1