Daughter’s 1099-NEC for farm labor

[Nicolet7799]

I’m trying to file my 18 year-old dependent daughter’s income from working as a general laborer on a farm. They gave her a 1099 NEC form. After entering that, it’s saying we made an error and we need to enter a schedule C principal business code. We do not have one. Are we allowed to leave it with no entry or are we doing this wrong?

[Bsch4477]

Was this a one time temporary job not a business profit making venture?

[Nicolet7799]

It was part time regular work on a chicken farm. They said their accountant told them they had to do it this way. I think so they didn’t have to worry about employee benefits and that kind of stuff. This is the first time doing taxes with this. Its been very confusing.

[Bsch4477]

She is considered as self employed. Her business code is 115115 and she completes Sch C. 

[ThomasM125]

Because she is performing a service for compensation and her income was not reported on a W-2 form, the default treatment of the income by the IRS will be that the income should be reported as self-employment income. Even though she is not running a business in the normal sense, she is treated that way for tax purposes, so you need to answer the questions in TurboTax as if she had a business. She can deduct expenses that are business related, such as work supplies she purchased on her own. She will be subject to self-employment tax on her net income to compensate for not paying in social security tax.