Need to add 1099 income for a dependent

[Carl]

What kind of 1099? 1099-MISC? 1099-INT? 1099-DIV? 1099-R? There's over 20 types of 1099's. Why doesn't the dependent file their own tax return? What box in the income reported in? (That really matters, because if it's less than $400 it doesn't need to be reported at all, if it's in a certain box.)

[aleon7074]

1099-MISC.  Box 3 (Other income).  More than $400.  Stipend for college student doing research work during the summer.

[Carl]

The student will report that on their own tax return. You can't report it on your return, even if you qualify to claim that student as your dependent. Since it's more than $400, they're required to report it. But since it's not self-employment income, there's a special way they have to enter it so they're not assessed the "additional" self-employment tax. Here's how they have to enter it in TurboTax.

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.