Help with 1099 -NEC

Forum|Forum|4 years ago
February 8, 2022
2 replies
28 views

My son and I both received a 1099-NEC from the church that we serve as Middle School and High School Youth ministers. Even though we are not on "staff," we are paid "staff support" (this is in the memo). Entering this 1099-NEC caused my son (who is a college student) to owe over $2700 at the time. Is there a better way to report this or is he stuck with the 1099-NEC designation? I do not believe the person who created this would change to something else. Any help or direction would be so appreciated.

Best answer by ZoltanB45

Sounds like he made more than $15,000 at this gig. He has to report it as it is considered self-employment income and is subject to self-employment taxes. However, he is allowed to deduct any expenses related to this job. Did he have a vehicle? Did he pay for meals while working? To be honest, if he is your dependent, I doubt he will have many of the normal business expenses he could use to reduce this income. Here is a link giving an idea of common small business expenses. business deduction

ZoltanB45Answer

Level 9

I-Am-BATMANAuthor

Level 2

Thanks for taking the time to answer my question. He only made 11,700 from the place he received the 1099 NEC. He's 26 and has other jobs so he wouldn't fall under me as a dependent. It would be a stretch to find any "business expenses." Hopefully, some of his college expenses might offset how much he owes.

Rainman12

Alumni - Champ

You're stuck. 1099-EC = Non-Employee Compensation, = Schedule C, Self-Employed, whereby must pay FICA (SS/Medicare) on net proceeds. Follow interview prompts. Could ~40% of gross in taxes due ...

I-Am-BATMANAuthor

Level 2

I appreciate you taking the time to answer. The main issue in this matter is that it's not self-employment but it is being treated as if it is for this organization to avoid paying the taxes. He's not a contracted or freelance person and every pay stub says "staff support."