<p>Las year my son got a summer internship at the university he is attending. Earlier this year he got a 1099-Misc form, which I understand is not a good thing because he is being considered self-employed.</p>
<p>Does enybody have experience filing return with this particular type of situation, in particular what kind of deductions he is allowed to take?</p>
<p>To make things coplicated he also had a job during the school year that was reported on a W-2.</p>
<p>Back in April we were confused so we filed an extension. Unfortunately time is up and so far I have not found a good source of information.</p>
<p>Thanks in advance for your help.</p>
<p>I think he gets a standard deduction, but it's much less if you declare him as a dependent on your return than if you don't.</p>
<p>The 1099 income is taxable as is the W-2 income, but they get counted in different places on the 1040. Some types of 1099 misc income require that he fill out the Self Employment tax form, other types don't. Read the instructions in the 1040 packet-- they give details.</p>
<p>If you're not sure, you could try submitting without the SE form (and SE tax)-- they'll let you know if it doesn't fly, and you may have to pay some interest in addition to the SE tax owed.</p>
<p>OTOH-- if you fill out a Schedule C, and give him a business name, you can deduct all of his (unreimbursed) expenses related to that business and the 1099-Misc income. He could take travel mileage, and whatever else he paid that was necessary to do his work. </p>
<p>Best always to check with a real tax guy or gal-- you get what you pay for when you ask tax advice on a discussion board. :)</p>
<p>sblake,</p>
<p>Thanks for the information and advise. It is not clear where SE is the way to go. I have used Turbo Tax and they take us in the direction of filling Schedule C. The part that is not clear is where is his tax home, CA where he studies or NJ where we live. Depending on that, he may be able to deduct more expneses. As you indicate, it is probably time to talk to a tax expert.</p>