1099-NEC

[MWolfe00]

My 18 year old son received a 1099-NEC for helping a farmer last summer in the amount of 2910.00.  Does he have to file taxes?  I claim him on my taxes.  If so, turbo tax is making him be a business?  

[JohnB5677]

Yes, he should file a tax return.

He should indicate that someone else can claim him as a dependent.

If this is something that your son does not ordinarily do you can post it this way. 

• Wages & Income

• 1099 MISC and Other Common Income

• Select Income from a 1099-NEC

• Enter payer's name

• EIN Number

• Amount you received

• State what it was for

• Click None of these apply

• No you do not have expenses to enter

[MWolfe00]

He will probably do the same thing this summer, should he ask the farmer to do something different?  or should he start keeping track of anything.  With no taxes being paid in by farmer he has to pay over 400.

[LeonardS · Accepted solution]

Yes, your son should speak with the farmer and ask why the farmer is reporting his income as an independent contractor on Form 1099-NEC vs reporting his income on Form W-2 as an employee.

If your son is an employee than his employer, the farmer, is responsible for withholding employment taxes from your son wages and your son will receive a W-2 for his income working for the farmer

The general rule is that an individual is an independent contractor if the payer, farmer in your son's case, has the right to control or direct only the result of the work, not what will be done and how it will be done.  Ref: IRS Understanding Employee vs. Contractor Designation

@MWolfe00