I’m playing a piece of music that was “dedicated” “for Betty” and after playing it all I can say is “Sorry, Betty.”
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I fell asleep last night with makeup on. This morning my husband commented on how “radiant” my skin looked and how the water only thing was really doing wonders for my skin. 
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My wife did a little googling to find out how old the neighbor lady that fell is: 96
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I think I’m going to need to practice my blocking muscles again here soon.
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The Borg freak me out.
my kid got a 1099 from an org for like 900 in work she did. she is in HS. turbo tax options for including it were like $129 or whatever. no way to capture it accurately i guess.
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There are various rules whether she needs to file it based on how much earned income she had, unearned income, and how much expenses she can claim against the $900. As an example, if she had expenses of at least $500 against the $900, less than $350 in interest income, and less than $13K in total earned income for the year, then you should be fine not filing it. (Disclaimer… I am not an accountant)
There are various kinds of expenses that potentially you can claim against it; supplies, travel (but not commuting expense if the only place she worked is at the organization), home storage space for work-related items, contribution to traditional IRA, etc.
If not…
Amazon seems to have the cheapest download prices for turbotax this year. This is the version that takes 1099s.
Downloads are cheaper than the website.
I liked Taxact in the past, but they don’t have software for my current situation so haven’t used them in a while. You might be able to find a cheap version of it though the current price is higher.
You can also take the position that she’s really an employee, not self-employed, by the org, but if the IRS choose to investigate (unlikely, but possible), that may get the org in trouble.
If she was an employee, not self-employed, then you don’t need have at least $500 in expenses. The other conditions still apply in my example.
This part is not quite accurate.
First, I’m assuming we’re talking about a 1099-NEC?
If her self-employment income is $432 or less she will not owe self-employment tax. If it is $400 or less and her total income is less than the standard deduction without too much investment income then she doesn’t have to file at all although to be honest they might question it.
Her self-employment income is going to be the $900 plus any other self-employment income minus her expenses. This all gets reported on a Schedule C (self-employment income), which Turbo Tax absolutely should be able to do. It may have asked you if there was any self-employment income and maybe this felt like a job more than a small business, but it’s taxed as a small business so answer “yes” to that question.
You cannot subtract retirement contributions from SE income (they are certainly tax-deductible, but they have no impact on the $400 filing threshold).
If she is a business and her base is her home (which is almost certainly the case) then she absolutely CAN subtract mileage driving from her business (ie house) to & from her client (the folks who paid her $900). Just put the address into Waze or Google maps and multiply by the number of trips she took to the best of her ability to recreate it. (The IRS will never EVER question this if it’s remotely plausible.) Don’t forget the return trips!
I’d be shocked if Turbo Tax can’t do a Schedule C. Don’t worry about inputting the 1099… as long as she’s reporting a top line of $900 or more on her Schedule C that will pass the IRS checks. 1099s aren’t like W-2s in that you don’t have to input every last code.
She can certainly also subtract supplies, a portion of her cell phone expense that was related to this business and other reasonable expenses. Suppose y’all are on a family cell phone plan that costs $280 a month and there are 4 people on the plan. 10% of daughter’s cell phone use for 3 months was related to this $900.
$280 / 4 * 10% * 3 = $21 is her cell phone expense. And I’d spell all that out in the line item. I’d input it as “cell phone: $70 @ 10% for 3 months” if I was preparing her return. That looks a bit more like a legit number and not something you pulled out of your butt even though the 10% is absolutely pulled out of the butt. (Estimate on the high side of reasonable here.) This is considered a miscellaneous expense and is quite legit.
The mileage looks scary but it’s not. You’ll have to input the details on the car (year, make and model, date it was “placed into service” which you can just say 1/1/2023 or some other date that corresponds to when she started this gig… don’t sweat the date too much), total miles driven, business miles and commuting miles. Don’t even worry about the commuting miles… those are 0. Make up something plausible for total miles. 8,000 miles, 10,000 miles, 5,000 miles… doesn’t matter in the slightest. The only thing that matters is the business miles. (The total miles does need to be greater than or equal to the business miles. The IRS absolutely only cares about the business miles and even then I use the word “cares” loosely.) Once you have that input Turbo Tax should apply the IRS rate and you’ll see the result in the auto expenses.
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She’s eligible for the home office deduction but if she’s living with mom and dad this is a bit dicey. I’d probably skip that unless you want to be really aggressive. The claim would be that there’s a clearly defined portion of the home used primarily for her business. And then she can subtract her expenses that she paid in maintaining it. Kind of dicey on mom & dad’s house. Especially when mom & dad are deducting the mortgage interest & property taxes.
Yeah, maybe you claim that she paid the utilities & HOA & insurance and you gifted that same amount back to her every month… you can probably get away with that but it’s … aggressive.
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I mean, you can claim the organization is committing fraud and go after them. They get in big big big big HUGE trouble if the IRS agrees with this claim. There will be an investigation. It will be God-awful for everyone involved.
It will be vastly less work to just fill out the schedule C. So unless you’ve got a serious vendetta against the company… don’t do this.
Also, unless you have solid reason to believe that the company is risking massive fines & penalties in order to save $68.85 of employer-paid FICA tax, tommie’s daughter will probably lose and then be delinquent in her taxes and she’ll still have to file them with the schedule C & pay the self-employment tax anyway. Plus interest & penalties.
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Oh another legit schedule C expense that isn’t too common with young folks but is plausible is subscriptions. If she has a subscription to the Wall Street Journal or The Economist or something else business related then that’s a legit deduction.
It can also be a trade publication. She has to be able to make the claim that it’s relevant to her business. So like, not Cosmopolitan (unless she’s selling sex toys). If it’s related to fashion in any way I would say that a subscription to Vogue or Glamour would be legit. If it’s landscaping or interior design then Better Homes and Gardens would be legit.
It has to tie in some way.
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and deducting her
Eh, that wouldn’t matter actually.
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Now that you have the instructions . . .
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yes, there are a lot of expenses and others for her to track. total income of part time job at pizza place and side hustle as youth sports official totaled like $3K. But 800 was officiating and generated a 1099-NEC. and software packages charge you for filing that and … pain in the ass for a person who barely needs to file anything in the first place.
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This is the real pain. Looking forward to irs provided software for e filing. I still do taxes manually (although my state is getting more automated in its filings), but my kid with NEC is more complicated than my personal filing and not eligible for free software.
I use TaxSlayer for my taxes (started way back when I was still a Reservist for the Army and go a couple years of free use).
If you can file using 1040 EZ, it’s free–including e-filing one state return (if that state accepts e-filing). Note that I don’t think that you can use this form if someone can claim you as a dependent.
If it turns out that you won’t qualify, you can still complete things and you’re charged $38 (for Federal e-filing only; filing the state return is an additional $45). You’re not charged until you actually try to e-file.
And I don’t think that there’ll be any problems with adding a 1099.
This is good to know. I’ve been avoiding deducting mileage because I didn’t want to bother calculating total personal mileage on the car. I’ll still try to be accurate, but it’s less nerve wracking if this is not typically audited…
I don’t see how this is different from the cell phone plan if mom and dad pay that too. I suppose it’s not likely there’s a clearly defined portion of the home unless you’re aware of this requirement in advance. I’m thinking something like a cubby somewhere to store uniforms.
I suppose if you’re deducting mortgage and property tax that might be a problem but maybe not if they’re using the standard deduction.