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1099-NEC Income is Earned Income

Anna Marie
Level 1

Taxpayer is a college student and has one W-2 for $2500 and one 1099NEC for $1100.  She is a dependent on parents return.  The 1099 is entered as Other Income so as to not generate SE tax. The standard deduction is calculating as the 

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3 Comments 3
Level 15

NEC = Non Employee Compensation

So it IS subject to SE tax.

And you need to finish your question

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
Level 15

If you report 1099 income as Other Income on Sched 1, line 8   it is not included in calculation for Standard Deduction

Level 15

The instructions to the taxpayer on the back of the 1099-NEC say:

 If the amount in this box is SE income, report it on Schedule C or F (Form 1040) if a sole proprietor. . ..

Which indicates to me that sometimes it is not SE income.  Especially when you're dealing with college students on work/study grants, fellowships, etc. -- and with a new form that not everyone is sure how to use.  

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