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