1099-nec for summer job, only income, 19 year old college student - how to treat?

[shannonkarcher]

My dependent son (19, full time student) had a summer job where he earned $3,047.25.  This was his only income for 2021.  He received a 1099-nec instead of withholding and a w-2.  He does not have a business of any type.  What are the reporting requirements?  I am using TT deluxe to do his taxes as I need it to do my own.

[xmasbaby0]

MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.   Any version of the CD/download can be used for this.

You might also want to use free software from the IRS Free File versions:

https://apps.irs.gov/app/freeFile/

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

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://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

[LeonardS]

Follow these steps to enter your son's 1099-NEC:

1. Sign in to his TurboTax account if it is not open
2. Enter 1099-NEC into the search box
3. Click on Jump to 1099-NEC in the results box
4. Answer yes to the question Did you get a 1099-NEC
5. On the page Do You Want to Enter Your 1099-NECs Now click Add a 1099-NEC
6. Answer the questions on the page Let's get the info from your 1099-NEC
7. Enter the reason for the 1099-NEC
8. Follow the prompts to add your 1099-NEC information.

This TurboTax link What is a 1099-NEC? has information you may find useful

[shannonkarcher]

This is 100% his return.  Entering the 1099-nec is easy.  My question is about what is next?  Will he have to do a schedule C?

[shannonkarcher]

Thank you.  How do I know the right reason for the 1099-nec?  If I use the "employer should have reported w-2" option, it starts me down the path of doing a 8919, which doesn't seem appropriate.  If I select "none", it seems like it will ask more questions.  I just want to be sure I don't trigger something that complicates the situation.

[JohnB5677 · Accepted solution]

He does not have to do a schedule C unless he has expenses that he can apply to those earnings.  If this was a job it sounds like a W-2 should have been issued for this income.  If this is the case he will owe self-employment taxes.  

The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.

On a W-2 the employer pays half of that