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?
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?