My neice (16yo at the time) recieved a 1099 in the amount of $1250 for a summer intenrship for the 2018 Tax Year. I help her file her taxes. What I finally decided was that the amount should not have been recorded on a Schedule C (therefore generating self-employment tax) but as "Other Income" which is (or was in 2018) Schedule 1, Line 21 on the 1040. I may have made a post here. I seem to recall that since this was for educaiton benefit, it was suppose to go there. The 1099 came from an relatively large educational institution in my local area so I don't think they did anything wrong. We haven't been audited yet (and even had to file an amended return for this same tax year).
Edit: This also wouldn't count as earned income either though you couldn't use for a roth ira, etc. Here is the post I made about this:
viewtopic.php?t=278772 - as you will see, no one really agreed with me so take everything I said with a grain of salt.
Edit: This also wouldn't count as earned income either though you couldn't use for a roth ira, etc. Here is the post I made about this:
viewtopic.php?t=278772 - as you will see, no one really agreed with me so take everything I said with a grain of salt.
Statistics: Posted by vtjon — Tue Aug 06, 2024 2:35 pm — Replies 6 — Views 670