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shannonsba
New Member

My daughter is 17, goes to high school, and works part time as a soccer referee. She received a 1099-MISC from employer, earned $1100. Does she have to file a return?

 
1 Reply
Carl
Level 15

My daughter is 17, goes to high school, and works part time as a soccer referee. She received a 1099-MISC from employer, earned $1100. Does she have to file a return?

Yes she does. Several things to keep in mind here too.

First, when your daughter starts her tax return, she must select the option for "I can be claimed on someone else's return". If she does not select that option, then you can't claim her as your dependent.

Next, I'm assuming the income is reported in box 3 or 7 of the 1099-MISC. With that, as far as the IRS is concerned she earned that money while self-employed and in business for herself. Therefore she will be including a SCH C with her tax return.

If she will NOT be claiming any business expenses or business assets, then the online version of TT Premier will do fine. Otherwise, she'll have to use the most expensive Self-Employed version if she will be claiming things like equipment, travel, and the such as a deduction from her business income.

If she uses the Desktop version of the program, then she can do all this much cheaper with TurboTax Deluxe.

Also, if 2016 is the "ONLY" year she will be doing this, she MUST make sure to also report her "business" as sold, closed or otherwise disposed of on the 2016 return. If she does not, then the IRS will be expecting a SCH C from her on her 2017 return next year. (If she's doing the same thing in 2017, then no need to report the business disposition on the 2016 tax return),

Finally, note that when using the online version of TurboTax, one account, one return. So she will have to create her own online account for her tax return. YOu can create up to 5 accounts online per email address. TO do that, simply log out of the account you're using now, and click the "create account" link under the password entry field and go from there.

  • Online Vs Desktop

    Online version: With the online version of TurboTax (any flavor) you can only create one tax return per online account. But you can create up to 5 accounts per e-mail address. With the online version you will $PAY$ for each tederal tax return that you "print and file" or e-file. You will also pay a purchase price for each state tax return program, and then you will pay again to file that state return, regardless of weather you elect to "print and file" or e-file the state return.

     Desktop version: With desktop you purchase the FEDERAL program one time and install the program on your computer. Then you can create as many federal tax returns as desired. But per IRS limits, you can only e-file a maximum of 5 federal returns. After the 5th federal return, you can print, sign and mail any additional federal returns. You DO NOT pay to e-file federal returns, or to print and file federal returns.

    For state taxes, you have to purchase each state program separately and install the program as an add-on to the federal program. Then you will pay again to e-file the state return. You can avoid the cost of e-filing a state return if you instead elect to print and file the state return. With the desktop version only, there is no additional charge to print and file the state return via mail. There is only an additional charge if you elect to e-file the state return.


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