1099-NEC

[gpost]

My son, a college student, worked a few hours a week at his gym doing some basic cleaning in return for a free monthly membership. He received a 1099-NEC from the gym for the cost of the monthly membership fees ($1,100 or so).  He doesn't have a company, and he didn't expect to receive a 1099 at all as it was a basic barter deal, so how do I enter this into Turbo Tax for him?   

[DavidD66]

Goods and/or services received in a barter transaction are required to be reported and are taxable.  You son was working as an independent contractor and will need to report the value of his services on Schedule C as part of a Form 1040 personal tax return.  

According to the IRS

"Reporting bartering income. You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Schedule C (Form 1040) Profit or Loss from Business."

Form more information see IRS Topic no. 420, Bartering income

[xmasbaby0]

It may have felt like barter to your son, but the IRS sees it as self-employment income for which he needs to pay self-employment tax for Social Security and Medicare.  He will not owe any ordinary tax.  

It looks like you are posting from the CD/download so you can prepare the his return without paying an extra fee.  

Make sure his return is marked that he can be claimed as someone else's dependent---do that in Personal Info.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

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

calculator-2021-2022-50907/