1099 misc

Forum|Forum|6 years ago
February 10, 2020
1 reply
4 views

I am doing taxes for my grandson who is a college student and filing for first time He is a resident of Connecticut and had a paid internship last summer for which he received a W-2, paying Fed taxes but no CT taxes. He also received a 1099-Misc. for a part-time job in New York. I entered the 1099 information and it is generating a schedule C but he has no business expenses. Do I void the schedule C or use it and how if so.

VolvoGirl

Level 15

The 1099Misc is for self employment income. He needs to fill out schedule C and pay the self employment tax on it.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.