Do I need to file 1099-Misc if...?

Question

My parents claimed me on their taxes and we already submitted them. I used scholarship money for college in the 2010 year and did a 1098-T when we filed. I just received today a 1099-MISC for my scholarship. Do I need to amend our taxes and add this? We used TurboTax to file with, I looked on the site how to add the 1099-MISC, but it only give options for my parents to add it yet it's under my name. What do I do?

Answer 1

Best Answer - Chosen by Asker

All income reported on a 1099-Misc is considered self-employment income by IRS. If the 1099 was for more than $400, then you do have to file a tax return. You can file a tax return even if you parents already claimed you, all you have to do is mark the box that states you are a dependent. Unfortunately, all of the income that is reported on a 1099-Misc is subject to self employment tax, which means, if you file, you will owe. Self employment tax is 13.3%, you will most likely owe 13.3% of the amount shown on your 1099 in taxes.

I hope that I have answered your question completely. You may need to see your local CPA about this, especially if the 1099 is for a large amount of money.


CIRCULAR 230 DISCLOSURE: You are hereby informed that nothing contained in this article was intended or written to be used, or relied upon by anyone for the purpose of avoiding penalties that may be imposed under the internal Revenue Code of 1986, as amended, or other applicable tax law, or promoting, marketing, or recommending any Federal Tax transactions or other matters. This article is not a replacement for advice from a CPA or other tax professional.

This article is not an exhaustive review of Payroll Rules and Regulations and is not a substitute for advice from a CPA or other tax professional. This article is not intended to give legal advice or determine which forms are most suitable for your needs. Information relates to employers in the state of Florida.

Source(s):

Mary G. Stewart is a CPA in the state of Florida with a Bachelor's Degree in Business Management and a Bachelor's Degree in Accounting.

Asker's Rating:

Asker's Comment:

Very informative and was simple enough for me to follow along step by step to complete my file. Didn't know I could still file even if I was being claimed. Thank you both so much!

Answer 2

A 1099-Misc is your icome, not yor parents.

If you made more than $400 from self-employment (and no other income), you would need to file a 1040 schedule C-EZ and SE under YOUR SSN.