Level 4

Question

SE Tax for a 17 year old?

Forum|Forum|5 years ago
May 13, 2021
5 replies
13 views

My client's 17 year old son who he claims as a dependent, had a little part time job working 8 hours a week. The employer paid him on a 1099NEC instead of putting him on payroll. The 1099 was for $1,805. Is filling out a Sch C and having him pay SE tax my only option?

ProSeries Basic

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qbteachmt

Level 15

"Is filling out a Sch C and having him pay SE tax my only option?"

Or, turning in the employer for worker misclassification.

Does it appear the nature of the work merits 1099-NEC treatment?

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PATAX

Level 12

@qbteachmt in my opinion I think filing the Schedule C would be the best option ... While what you say in your latter point may be factual, I would think that many workers who received 1099NEC knew that tax was not being taken out of their pay while they were working and being paid each pay period, unless they're very bad with math... Not saying at all that this makes it right, just making a statement and as you know that it's just my opinion...

Jim-from-Ohio

Intuit Community Champion

If they were treated as an employee but a 1099 was issued, you can file Form 8919 to get out of some of the taxes. This may not go well with the "employer" so not sure if that comes into play at all for this case.

BobKamman

Level 15

This does not fit any of the four categories where Form 8919 is appropriate.

Plan on going back to work there? Bite the bullet and pay the taxes.

Learned your lesson about working for tax cheats? Use Form 4852.

T

The-Tax-Lady

Level 8

I get them every year for a client's dependent child who mowed lawns for a minute in the summer.

I file it as other income, since the kid is not in the business of mowing lawns for anyone else and has no say in hours worked or how the work will be done. I also tell them them to stop working for whoever it is that's just cheating the system at the kid's expense, literally.

dkh

Level 15

I do the same as @The-Tax-Lady for a few clients. Teenagers that helped the local farmer load chickens two or three times a year get 1099s. I enter as other income. So far haven't received notices from IRS that SE tax is due. (knock on wood)

BobKamman

Level 15

Someone commented on a tax blog that the minimum amount of tax for which IRS will issue a CP-2000 is $500 -- which would mean about $3,300 of 1099-NEC income. I think I've seen cases where it was $400, but those might be where it starts out above $500 and by the time IRS puts some work into it, they decide not to drop it.

At least $1,700 is enough for the kid to earn a quarter of Social Security coverage if he pays the SE tax. If it were under $1,410 you would have to explain that it might be a contribution to herd immunity to senior poverty, but there is no personal benefit.

qbteachmt

Level 15

Here is your Help article for 1099-NEC and form 8919 for ProSeries:

https://proconnect.intuit.com/community/form-1099-nec/help/how-to-enter-form-1099-nec-nonemployee-compensation-in-proseries/00/121991

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