Niece's 1099-MISC form

[deeMatrix]

Helping Niece with her 2022 taxes.  She is a full-time college student and a dependent on her parents taxes and earned about $6K in part-time W-2 wages in 2022.  Additionally though, she received a 1099-MISC form for $1,000 as an Internship Stipend for assisting/teaching a seminar at another college during the calendar year.

In filling in her minor tax info she owes Fed taxes ($135 or so) for this $1,000 and there are a lot of business-related questions in Turbotax.  Any insight on this would be greatly appreciated as her total income is roughly only $7K or so.

Thanks in advance,

deeMatrix

[DaveF1006 · Accepted solution]

Yes, the $135 tax due on the $1000 sounds like a self-employment tax earned from the 1099 MISC. These are FICA taxes that are normally paid from wages from a W2 but since a W2 wasn't issued for this teaching engagement, a 1099 MISC was issued making her responsible for paying her own FICA taxes.

Self-employment tax is determined by the following formula :$1000 X 9235 X  .153 = $142 but there may have been other factors that account for this slight difference. For example, did you include the $7k as part of the income in this return?  Did you also indicate that she is a dependent of someone else in the MY INFO section of the return? 

Write back if you have additional questions? We are here to help.

[deeMatrix]

Thanks Dave for your response.

deeMatrix