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No_Knowledge_5885 OP t1_ja9cbnh wrote

Reply to comment by Werewolfdad in helping my 21 y/o with taxes - does he even need to file? by No_Knowledge_5885

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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