My child received 1099-MISC for winning chess tournaments, ~$2000, Is it earned income or unearned income? Thanks!

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It is reported as other income and it is unearned income. This income will not be subject to Social Security and Medicare taxes.

5 Replies

Is the amount reported on box 7 or box 3?

box 3

Box 3 is prize money . Unearned income. Go through the 1099 Misc flow.

but when I got to child income, no price money option

It is reported as other income and it is unearned income. This income will not be subject to Social Security and Medicare taxes.

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