<p>My son (a full time student) did a research project last summer for a non profit (state public health foundation) arranged through his school. He was told to fill out an invoice W2 form. </p>
<p>But he received a 1099-MISC showing the $3000 grant in box 7 - I guess indicating he's an independent contractor. He had no other job (but he rec'd a $60 refund from last year's state taxes and had a few dollars in interest). He wasn't expecting to file taxes because he thought he was under the limit so he filled out his FAFSA and other FA forms as a non filer. Oops.</p>
<p>I never dealt with a 1099-MISC but put it through our tax software just to "double check". It looks like he will need to file and pay almost $500 in SS and Medicare taxes. </p>
<p>Has anyone dealt with a 1099-MISC? Any advice on which forms he needs, etc?</p>
<p>Guess he has to go back and redo his FAFSA and other school FA forms as well.</p>
<p>D3 had the same situation last year. Your son will have to file a 1040, schedule C, and schedule SE. I guess it is simpler for the non-profits to pay students in this manner but it is really inconvenient when tax season comes along.</p>
<p>Thanks hoosiermom.</p>
<p>Did he incur any unreimbursed expenses/mileage?</p>
<p>He should claim expenses against his earnings. If he worked in a lab, did he have to purchase safety glasses, safety shoes, or anything else related to the job? What were his transportation expenses (can he create a log showing mileage to and from his work site each day he worked)? Any expenses he can write off (and the IRS does expect to see expenses against income reported on a 1099-MISC) will reduce the self employment taxes.</p>
<p>Are you sure commuting expenses are deductible?</p>
<p>Commuting expenses are NOT deductible, for a person who works at just one location. Now, if on any day he has to travel from his primary work location to a different job site, the mileage from the primary location to the second one and back can be deducted.
See IRS publications for details.</p>
<p>Sorry - not communting expenses, but if he is traveling around doing the research (site visits, for instance) those travel expenses count. Was thinking of a client I worked with yesterday whose travel expenses on the job ate up almost all of his internship income. Something to keep in mind when looking at internships.</p>
<p>can you claim food and other expenses, ie. airfare to the internship?</p>
<p>Please use old threads for information only, use the New Discussion button to ask your question.</p>