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New Member
posted Jun 3, 2019 11:31:59 AM

Dependent child earned $6550 working in a warehouse. he received a 1099misc not a w-2. is there any way to avoid him having to pay self employment taxes?

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1 Best answer
Level 15
Jun 3, 2019 11:32:00 AM

No.  Self-employment income (reported in Box 7 of a 1099-MISC) is subject both to ordinary income tax and to the self-employment (SE) tax.  The SE tax is for Medicare and Social Security.  It's a tax that would have been withheld if he had been an employee and not self-employed.

3 Replies
Level 15
Jun 3, 2019 11:32:00 AM

No.  Self-employment income (reported in Box 7 of a 1099-MISC) is subject both to ordinary income tax and to the self-employment (SE) tax.  The SE tax is for Medicare and Social Security.  It's a tax that would have been withheld if he had been an employee and not self-employed.

Level 15
Jun 3, 2019 11:32:02 AM
Returning Member
Jun 3, 2019 11:36:29 AM

The link, if it does not work for you (it did not work for me) is a discussion on the IRS page:

 

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Independent Contractor (Self-Employed) or Employee?