Children in Research Study, Pfizer sent one 1099-MISC in parent's name

[mlkmnsgrl]

I received a 1099-Misc for other income (box 3) for my 3 children who participated in a Covid-19 vaccine trial over the last year 2 years. The first year the income didn't hit $600 per child and I didn't report it because it is THEIRS. We haven't taken it off the Visas it's being loaded onto after each study visit, and will deposit it all in a bank account for each child when they're done later this year (except $50 each spending money for a vacation we took).

So, now I have the 1099-Misc, which means I have to report it as my own income, but that also raises the question of whether I should be doing a correction for last year and I'm really confused because they were compensated more in 2021 than 2022, so I'm not clear why I only received a 1099 this year or why it's a single lump for all 3.

Regardless, we are already using the Self-Employment online to file, I didn't track expenses associated with our trips up to the study site, though it's 77 miles round trip and we went a couple times this year, quite a few last year. Ugh!

[SantinoD · Accepted solution]

It depends on who's name is on the 1099-MISC form. If it is under your name, then you need to report that on your tax return as "other income". This is not considered self-employment income, so you will not have to pay self-employment tax, but you won't be able to deduct any expenses. This income will be taxed as ordinary income. 

If the 1099-MISC is in your child's name, see below.

At What Income Does a Minor Have to File an Income Tax Return?:

• A minor who may be claimed as a dependent must file a return if their income exceeds their standard deduction ($12,950 for tax year 2022).
 

Here is a link with more information: At What Income Does a Minor Have to File an Income Tax Return?

As far as 2021, IRS states you must report "other income" even if you didn't receive a tax form (1099-MISC in your case).  If you need to Amend your 2021 tax return, follow this link for steps to Amend: How do I amend my federal tax return for a prior year?