[elstonbutt]

My daughter worked a four month paid college internship last year. I am reporting her income and deducting expenses such as rent, utilities and food on Schedule C-EZ and taking it to form 1040. After her standard deduction she has no federal income tax liability; however, in filling out Schedule SE she does have a social security payment to make. Her internship was with NASA, does that make a difference? Thanks for your advice.

[ScottGem]

Did she receive a 1099 or W2?

[elstonbutt]

1099

[joypulv]

She owes SE tax.

[ScottGem]

Where did you get all those expenses to deduct? Standard living expenses are not deductible. And yes she would owe SE taxes is she was paid as a contractor.