23 Jun Reporting income from a small job

Q. My college daughter earned $150 from a one-time job. She was paid with a check. Will she receive a 1099, and if she doesn’t, does she have to report the income?
— Trying to help

A. We’re glad you’re helping your daughter get organized for her tax return.

Your daughter will most likely not receive a 1099 from the employer who paid her $150 by check for a one-time job, said Thomas Hudson, a certified public accountant with Prestige Wealth Management Group in Flemington and Millburn.

“Employers are only required to file 1099s for persons and unincorporated entities if the annual amount paid to them exceeds $600,” Hudson said.

Hudson said if the $150 is your daughter’s only source of income, she will not need to file a federal 1040 because her income will be less than the filing requirement.

Her personal exemption will offset the income, he said.

If she does have other income, the $150 should be reported on Schedule C. She is entitled to offset that income by any expenses such as travel that are directly connected with the production of that income, Hudson said.

“Although she may not have a federal filing requirement, depending on what state she is a resident of, she may have a state filing requirement if the $150 is her only source of income,” Hudson said, noting that she wouldn’t have to file if she’s a New Jersey resident.

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This post was first published in June 2016.