How to handle Teen 1099-NEC for high school summer job: Filing options for dependents

I'm looking for some tax advice regarding my teenage son's summer job earnings. My family situation is: Married Filing Jointly (wife and I are both 47) Two kids (son 16, daughter 10) I'm self-employed with my own small business My wife works a regular W-2 job We've always filed as Married Filing Jointly using FreeTaxUSA software with no issues. However, this year my son (16) received a 1099-NEC for $1,125 from his summer landscaping job. The company didn't withhold any Federal or State taxes at all. This is his first ever income from working. I've got several questions about how to handle this: 1) Can I include my son's (16) 1099-NEC income on my joint tax return with my wife? 2) Does my son need to file his own separate tax return for this 1099-NEC income? 3) Can I still claim him as my dependent on our MFJ return if he has this income? 4) If he does need to file his own taxes, what should I be aware of? Any special considerations? Any help is really appreciated - I want to make sure we do this right for 2024 taxes!

0 coins

18 comments

Anastasia Kozlov

•8M

Your son's situation is pretty straightforward! Let me address each of your questions: For a dependent with a 1099-NEC of $1,125, you cannot include his income on your tax return. That income belongs to him even though he's your dependent. Your son likely needs to file his own tax return. The filing requirement for self-employment income is $400 or more, which he exceeds. This is because he'll owe self-employment tax even if he doesn't owe income tax. Yes, you can absolutely still claim him as a dependent on your joint return! His income doesn't disqualify him as your dependent as long as he meets the other tests (lives with you more than half the year, you provide more than half his support, etc.). If he files his own return, he'll need to indicate he can be claimed as a dependent on someone else's return. He'll likely owe self-employment tax (about 15.3% of his earnings) but probably no income tax. FreeTaxUSA should work fine for his return too.

0 coins

Anastasia Kozlov

•8M

Technically, your son should make estimated tax payments if he expects to owe $1,000 or more in taxes for the year. However, for a part-time job at this income level, he's unlikely to hit that threshold. If his income increases significantly, then quarterly payments might be necessary. For filing, you can prepare the return for him, but he should sign it himself since it's his return. If he's filing electronically, he'll need to create his own account and e-sign. If paper filing, he needs to physically sign it. This is a good learning opportunity for him to understand taxes, so I recommend walking him through the process rather than just doing it for him.

0 coins

Zara Mirza

•8M

After going through almost the exact same situation with my daughter last year, I found taxr.ai (https://taxr.ai) extremely helpful. She had a similar 1099-NEC situation from her summer job at the local ice cream shop. The tool analyzed her 1099-NEC form and walked us through exactly what to do. It confirmed she needed her own return due to self-employment taxes, but showed us how to properly mark her as still being our dependent. It even explained the self-employment deductions she could take to reduce that 15.3% tax hit. What I appreciated most was how it explained everything in simple terms that my daughter could understand. Made it a good learning experience for her first tax filing.

0 coins

Zara Mirza

•8M

I don't recall the exact price, but it was definitely less than what I would have paid an accountant. The interface was straightforward enough that my daughter could follow along, which was important to me since I wanted this to be a learning experience for her. The system correctly handled the dependent status with no issues. It specifically asked if she could be claimed on someone else's return and then adjusted everything accordingly. We've already received her refund with no flags or issues from the IRS, so everything was processed correctly. The system knows how to handle this common situation for teens with their first jobs.

0 coins

Luca Russo

•8M

Just wanted to follow up - I ended up trying taxr.ai for my son's 1099-NEC situation and it was surprisingly helpful! The system immediately identified that he needed to file his own return but could still be claimed as our dependent. It guided us through the self-employment tax calculation and even found a few deductions related to his lawn mowing business that we hadn't considered (like partial use of our family lawnmower and gas expenses). My son actually understood the process, which I wasn't expecting. He's now talking about tracking his expenses better this summer since he understands how deductions work. Definitely worth checking out if you're in this situation.

0 coins

Nia Wilson

•8M

If you're having trouble getting answers directly from the IRS about your teenager's tax situation, try Claimyr (https://claimyr.com). I was on hold with the IRS for HOURS trying to get clarification about my daughter's 1099-NEC and dependent status last year. After giving up multiple times, I found Claimyr which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed everything about filing separately while still claiming her as a dependent and explained the self-employment tax obligations clearly. Saved me so much frustration compared to the endless hold music!

0 coins

Nia Wilson

•8M

It's not as mysterious as it sounds - they use an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent comes on the line, you get a call back to connect with them. So you don't have to personally sit through the hold time, which can be hours. They definitely use the same IRS phone lines everyone else uses, but their system handles the waiting part so you don't have to keep your phone tied up all day. I was skeptical too, but when I got connected to an actual IRS representative after previously wasting entire afternoons on hold, I was convinced it was worth it.

0 coins

Aisha Mahmood

•8M

I need to apologize for my skeptical comment earlier. After multiple failed attempts to reach anyone at the IRS about my son's tax situation (also has a 1099-NEC), I broke down and tried Claimyr. I was literally connected to an IRS agent in about 20 minutes after spending 2+ hours on hold myself the day before. The agent confirmed exactly what others here have said - my son needs his own return due to self-employment taxes, but we can still claim him as a dependent. She also explained that he should be keeping track of any expenses related to the work for potential deductions. I hate admitting when I'm wrong, but this service actually delivered exactly what it promised. Would have saved me hours of frustration if I'd tried it sooner.

0 coins

Ethan Clark

•8M

Start simple with a basic spreadsheet or even a dedicated notes app on their phone where they can log expenses right when they happen. Have them take photos of all receipts - this is actually easier for teens since they always have their phones. For things like mileage, there are free apps that can track business trips. Even basic documentation is better than nothing. The key is making it easy enough that they'll actually do it. This is actually a great opportunity to teach financial responsibility alongside tax compliance.

0 coins