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Werewolfdad t1_ja9bxjb wrote

Why was he going to owe money?

Was he self employed?

Did he have unearned income?

If he is below the filing requirement he essentially can’t owe, so there’s something going on

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No_Knowledge_5885 OP t1_ja9cbnh wrote

He worked for a nonprofit organization last summer, who paid him $3K, but did not withhold anything. That's the only thing I can figure out why it was showing he'd owe something? They sent him a 1099-NEC (I think is the form? I'm at work currently and left the information at home)

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sleepyguy22 t1_ja9cl0y wrote

1099-NEC means he was self employed, and thus owes payroll taxes (i.e. social security & medicare) on his earnings. That's separate from income taxes, which he owes nothing.

File and pay the tax, otherwise the IRS will be sending a letter sometime in the next 12 months asking for their share, plus interest.

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Werewolfdad t1_ja9cv6t wrote

Man you guys are quick

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sleepyguy22 t1_ja9dl1g wrote

Right back at you on most of the posts here! :) I always am relieved when you and DeluxeXL concur with my advice and I haven't completely butchered my understanding of taxes.

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Jmb3930 t1_ja9e5et wrote

Her would owe at least the payroll taxes (SS and Medicare) since he made more then $400 he has a filing requirement

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Werewolfdad t1_ja9crxv wrote

1099-NEC is for a contractor, I.e. self employment.

If he has more than $400 in net self employment income he has a filing requirement.

Whether he should have been an employer is another issue.

Was that his only income? Where’s the other $5k from?

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No_Knowledge_5885 OP t1_ja9dx4d wrote

his work study job at college and about $2K he made working at Walmart.

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DeluxeXL t1_ja9cn06 wrote

That's a self-employment income. The threshold to file when SE income is present is $400.

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irishkathy t1_ja9pdl4 wrote

If he worked as 1099 (self employed) he would file schedule C and can deduct expenses. (Did he need a computer, software, cell phone, mileage, etc)

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