Yardley CPA Posted February 21, 2020 Report Posted February 21, 2020 Full time Junior in College claimed as a dependent on her Mom's return. Received 1099-Misc, Box 7 in the amount of $895. Also received W2 from her school for $150. No other income expenses. She is required to file a tax return as a result of receiving the 1099? And it is subject to Self-Employment Tax? Correct? Quote
Possi Posted February 21, 2020 Report Posted February 21, 2020 27 minutes ago, Yardley CPA said: Full time Junior in College claimed as a dependent on her Mom's return. Received 1099-Misc, Box 7 in the amount of $895. Also received W2 from her school for $150. No other income expenses. She is required to file a tax return as a result of receiving the 1099? And it is subject to Self-Employment Tax? Correct? In short, yes and yes. 2 1 Quote
WITAXLADY Posted February 22, 2020 Report Posted February 22, 2020 1099-misc could be other income but still tequired to file 1 Quote
Patrick Michael Posted February 22, 2020 Report Posted February 22, 2020 The SE income question would depend on what the other income was for. I've seen 1099's where box 7 is used when it really should have been in box 3 and and not subject to SE tax. If this for one time activity and they are not regularly, frequently or continuously engaged in the activity they were paid for, no SE. I would file even if there was no SE to avoid a love letter form the IRS down the road. 1 Quote
Yardley CPA Posted February 22, 2020 Author Report Posted February 22, 2020 5 minutes ago, Patrick Michael said: The SE income question would depend on what the other income was for. I've seen 1099's where box 7 is used when it really should have been in box 3 and and not subject to SE tax. If this for one time activity and they are not regularly, frequently or continuously engaged in the activity they were paid for, no SE. I would file even if there was no SE to avoid a love letter form the IRS down the road. Was paid by a local softball organization for assistance during one of their annual tournaments. Quote
WITAXLADY Posted February 24, 2020 Report Posted February 24, 2020 sounds like other income - not in a business... getting more of these this year - 1x events.. client received a 1099 for $456 for occasional farm labor - no expenses, no home office so no miles, all commute - Sch C..SE taxes more than 1x?? And he was not in the business of farming so I do not think it would be Sch F? Quote
Yardley CPA Posted February 24, 2020 Author Report Posted February 24, 2020 12 hours ago, WITAXLADY said: sounds like other income - not in a business... getting more of these this year - 1x events.. client received a 1099 for $456 for occasional farm labor - no expenses, no home office so no miles, all commute - Sch C..SE taxes more than 1x?? And he was not in the business of farming so I do not think it would be Sch F? Would you say my situation would not be subject to SE? Quote
Lee B Posted February 24, 2020 Report Posted February 24, 2020 The $ 895 should have been reported on a W - 2, not a 1099, therefore her income should be reported on Schedule C, subject to SE tax. The fact that she did this once doesn't change the character of the work. 1 Quote
Pacun Posted February 24, 2020 Report Posted February 24, 2020 Schedule C and deduct part of cell payment. 1 Quote
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