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1099-Misc Reporting

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j0hncage

Junior Member
From Washington State:

In trying to help my son file his '07 taxes, we ran across something kind of curious. Using Turbotax, we entered a couple of models for how he might report his $975 on the 1099-Misc that he received from his college for his service through the ASB as a 'programmer' (he was a student there). We expected a W2 but instead received this 1099-Misc. The net difference financially appears to be his going from owing $65 if we report the income as W2 income to $190 if we report it as a 1099-Misc. Doesn't seem right that it would have this kind of negative impact.

Further, Turbotax seems to want to treat this as a 'business', asking about the business name, what type of accounting (cash or accrual, etc). Seems a bit excessive when the purpose was to help offset his tuition and again, he was a student at this school.

Has anyone else run into this and have any advice on how to deal with it?

thanks very much,
JohnWhat is the name of your state?
 


TinkerBelleLuvr

Senior Member
From Washington State:

In trying to help my son file his '07 taxes, we ran across something kind of curious. Using Turbotax, we entered a couple of models for how he might report his $975 on the 1099-Misc that he received from his college for his service through the ASB as a 'programmer' (he was a student there). We expected a W2 but instead received this 1099-Misc. The net difference financially appears to be his going from owing $65 if we report the income as W2 income to $190 if we report it as a 1099-Misc. Doesn't seem right that it would have this kind of negative impact.

Further, Turbotax seems to want to treat this as a 'business', asking about the business name, what type of accounting (cash or accrual, etc). Seems a bit excessive when the purpose was to help offset his tuition and again, he was a student at this school.

Has anyone else run into this and have any advice on how to deal with it?

thanks very much,
JohnWhat is the name of your state?
Couple of things. It appears that your son did some work while NOT an employee of the college; therefore, your son received a 1099-misc. He is going to be paying both halves of social security/medicare with his tax return. Basically, he is paying all the taxes now, instead of the pay-as-you-go method with a regular job.

Now, you can probably get away using a Schedule C-EZ for this since his expenses are probably minimal. If he lived on campus/worked on campus while there, he doesn't have any transportation expenses. Did he use their computer for programming? Any extraneous expenses? Since I did similar work, there probably isn't much to deduct.

This is called a 'college learning' experience. Told my daughter the same thing two days ago. Next time, he should pay attention to HOW he is getting paid and whether or not he is getting a paycheck with deductions on them.
 

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