1099-NEC one time payment no business no other income

[slara22]

My son is 22 and a full time college student. He did a one time job for his college this year, for which he received a 1099-NEC form for $2000. This is his ONLY income (no interests, no other job, etc). He does NOT have a business. We claim him as a dependent in our tax forms (he has not needed to file taxes yet).

I understand and agree with the fact that he must pay self-employment taxes.I just want to make sure we are all doing the right thing.  

QUESTION 1: Is he actually required to file taxes on $2000? I am finding contradictory info on whether he should:

Info A (from IRS table 2 filing requirements for dependents):  dependents must file if gross income (earned + unearned) is larger than: $1300 OR larger than earned income +450. That would be $2450.  Since he earned a total of $2000, he would NOT have to file.

Info B (IRS table 3 Other situations when you must file): must file if net earnings from self-employment are more than $400. He is not self-employed, but his earnings were $2000. He would HAVE to file. Which is correct?

QUESTION 2: Assuming he has to file taxes and pay self-employment taxes (again, this is not the question)....would he have to open a business, get a business code, etc  just to do his taxes this year? Next year, he might get a 1099-NEC for a completely different thing (or not) and he would then have to open up another business potentially with a different code. Is this correct? Does not make much sense to me....

QUESTION 3: Is it at all possible that his 1099-NEC is included on our own return?

QUESTION 4: If he has to file his own taxes, he is still financially dependent on us. We will be claiming him as a dependent (though we have no deduction for claiming him) . And he should state that he can be claimed as a dependent as well. Would this be the correct way to do things? 

Tahnk you in advance

[Vanessa A]

1) If he worked for his college as an independent contractor, then he would be considered self employed even if he doesn't have an official business. This could be something along the lines of he was working in the IT department fixing computers in his spare time or doing maintenance when he was available or a variety of other things. 

So if he did work and was considered an independent contractor, he would need to fill out a tax return because he made mor than $400 in self-employment income. This does NOT affect your ability to claim him. 

2) No, he does not have to actually open a business. He is just considered self employed and will file a return using Schedule C.  He will have to pay the 15.3% Self-Employment taxes on this income.   All this says it he received income for doing work for someone who did not treat him as an employee so he has to pay the full amount of social security and medicare taxes. 

3) No.  You cannot include his 1099-NEC on your return, he must file his own. 

4) Yes, he would still state that you will be claiming him.  And you probably will have the $500 Other Dependent Credit for claiming him.

[slara22]

Thank you, Vanessa!