1099 NEC after internship

Forum|Forum|2 years ago
February 9, 2024
1 reply
1 view

Hello,

I am in graduate school and I received a 1099-NEC from a summer internship for $8000. Two questions:

- Do I have to pay SE taxes?

- If I do, what can I realistically deduct as business expenses? The internship was on-site for 2 months where I had to commute every day using public transportation and I had to have meals with my coworkers. I used my own computer.

xmasbaby0

Level 15

You cannot deduct anything for commuting to and from work, nor can you deduct your meals. Those are normal personal expenses incurred by anyone who works.

You have self-employment income for which you will pay self-employment tax for Social Security and Medicare. You will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

carlcamAuthor

Level 2

Thank you for your quick reply

On schedule C, TT is flagging some errors on some fields that has to be filled out. Could you help me on these:

- Description of the principal profession: Internship?

-Business name: My name?

- Address: My address?

- Is this business a qualified trade: Yes?

- Accounting method: Cash?

Play an active role in the business: Yes?

- Materially participate: Yes?

- Payments in 2023 that would require to file 1099? No?

- EIN: No?

- Business code: 999000?

DianeW777

Level 15

Yes we can help. You have many of the correct answers so here is the verification for you.

Description of the principal profession: Internship? Yes, you can use this.
Business name: My name? / - Address: My address? Yes, it's your name and address.
Is this business a qualified trade: Yes / - Accounting method: Cash
Play an active role in the business: Yes / - Materially participate: Yes
Payments in 2023 that would require to file 1099? Unless you paid $600 or more for someone to assist you, the answer is No
EIN: No - This is not required unless you have employees.
Business code: 999000 This will suffice however you can use the Business Activity Codes to find a code close to the kind of work you were doing.