My 19 year old son received a 1099 misc income and Box 7 is filled (non employee compensation $1649.28) and taxes were not withheld.
Can I file this on my income tax since I still claim my son?
He is currently a full time college student and I pay all his college expenses. Would he need to file on his own?
-Melliam
Dear Melliam,
Do NOT add your son’s income to your tax return.
Your son needs to file his own tax return. He will report the income from the 1099MISC on Schedule C Business Profit or Loss. Your son was an independent contractor and the IRS sees him as a business owner.
He may not owe federal income tax, but he will owe self-employment tax at 13.3% of his net income. Sorry, but this is going to hurt! I estimate he’ll owe around $200.
I cover this is detail in my ebook Teens and Taxes including an example with the forms filled out.
It’s worth the $3 to do it right. Buy a copy here.
And read this blog post from another parent whose son received a Form 1099MISC.
Carol Topp, CPA
P.S. If you think your son should have been treated as an employee and not an independent contractor, you can complain to the IRS. I cover all that in the Teens and Taxes ebook. Here’s an excerpt.