My daughter (17 years old) worked for a small boutique in town last summer. She received a 1099-MISC (at the end of February) from her employer. She made approximately $2400.
Does this amount go onto the 1040 "Other Income" line and how will she know if she has to pay taxes on this amount?

Thanks.

Concerned Mom

If this is her only income, she does not need to file taxes. But if she is your dependent and she has unearned income of $300 or more (for example from sources such as interest dividends, capital gain distributons, etc) she will have to file. Did she receive any other 1099 forms?

This was the only 1099 she received and has no interest dividends, etc. Why would an employer pay this way? To avoid paying payroll taxes?

This is non=employee compensation -- which is self employed income. It is reported on schedule C (Form 1040).

How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 or 1099: Employee or Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)