[imc53]

My daughter is 18years old. She graduated High School last year. During the summer, before starting college, she worked, and for that she received a Internship Development Mileage @ Stipend grant totaling $1000. This is reported on a 1099-Misc Form. I claim my daughter as my dependent. How do I file those $1000?

[AtlantaTaxExpert]

On the Form 1099-MISC, is the $1,000 listed in Box #3 as "OTHER INCOME" or Box #7 as non-employee compensation?

If Box #3 has the $1,000, and that is her ONLY source of income, then she need so NOTHING. The $1,000 is below the threshold for which she must file a tax return.

If Box #7 has the $1,000, then SHE must file Form 1040 with a Schedule C or C-EZ and probably Schedule SE. She will owe ZERO income taxes, but she like will pay about $100 for self-employment tax.

Under NO CIRCUMSTANCE do you add the $1,00 to YOUR tax return. That is HER money and she must file the return, if required as noted above.

[imc53]

Thank you very much for the info. I 'll try that.

[AtlantaTaxExpert]

Glad to help!