Our dependent earned under $6,000 in 2016, employer gave him a 1099-misc, checked "non-employee" compensation. Does he have to file and pay tax?

[cherieblatt]

This dependent is a full-time student at college, age 17-18 in 2016, and earned $4183 "nonemployee compensation" filed by "employer" on a 1099-misc. So he has to pay the IRS 15.3% of this for SS & Medicare, is this correct? Is there any minimum amount for form 1099-misc where no tax payment at all is required?

[MinhT · Accepted solution]

Yes, your dependent has to file a tax return as his self-employment income reported on form 1099-MISC is over $400.

Self-employment tax is not payable on amounts of $400 or less. Self-employment tax is calculated at the rate of 15.3% on 92.35% of the income.

When filing his return, he has to indicate that he is claimed as a dependent by someone else.