1099-MISC BOX 7 INCOME FOR A 16 YEAR OLD INTERNSHIP OF $3500.00

[AS1961]

My 16 year daughter got paid 3500 internship during 2019.  I understand that she does not have to file taxes but I can report that income under mine and be able to claim her as an dependent.  Is this correct?

[rjs · Accepted solution]

Your understanding is not correct. Income in box 7 of Form 1099-MISC is self-employment income. A child's self-employment income cannot be reported on the parent's tax return. She has to file her own tax return and report all of her income on her own return. Since she has self-employment income of more than $400 she is required to file a tax return. You can still claim her as a dependent on your tax return (if she meets all the requirements). When she prepares her tax return, make sure she checks the box that indicates that someone can claim her as a dependent.

[MilesA321]

No. If she lives with you and is 16 and your a parent responsible for her care, she is a dependent on your tax return.

As for the money she earned, she fell below the threshold of having to file a tax return. somewhere above 11K. Do not include her income into your tax return, that would be fraud & is illegal.  

[rjs · Accepted solution]

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@MilesA321 wrote:

As for the money she earned, she fell below the threshold of having to file a tax return. somewhere above 11K.

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For self-employment income the threshold is $400. The income in 1099-MISC box 7 is self-employment income. With $3,500 of self-employment income she is well above the threshold. She is required to file a tax return.