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elfmomof6
New Member

1099-NEC

My 16 year old daughter received a 1099-NEC for working at a horse stable.  No taxes were withheld.  She made around $3854.  I've entered all job related expenses.  Is it true that she owes $544 to the federal government? IF so, why as she is a student? This form is new to me. 

 

Thank you!

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2 Replies

1099-NEC

MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.  You may want to use this version of TT for that:

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

 

 

The fact that she is a student does not exempt your child from paying tax.  Age is not a factor.   She owes self-employment tax for Social Security and Medicare since those were not deducted from her pay.  She was paid as an "independent contractor" so the IRS considers her to be self-employed.

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
elfmomof6
New Member

1099-NEC

That"s what my husband and I were thinking.  Thank you!

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