[waterford123]

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

[ebaines]

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?

[waterford123]

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?

[MukatA]

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.