I have to complete this sheet for IL State University. My son is a golf caddie. They do not give w2. They are tips and he made about $1100. I filed using H&R Bock online and it said I didn’t have to file for him as the amount didn’t exceed the minimum. How do I complete this worksheet? Under section D I would choose I am not required to file and then put name of country club? What should I put in earnings section as he didn’t get a w2? Thanks!
I would put in the earnings section what he earned - $1,100 (approximately). Makes sense, right? But I don’t know about putting the name of the country club, if you are being asked to identify the employer. If the country club didn’t pay him anything (because all he earned was tips), than I don’t think the country club is his employer. He sounds more like an independent contractor for all the golfers he caddied for. Just provide an explanation of how the money was earned. It shouldn’t be that big a deal.
Did H&R Block mention anything about self-employment tax?
Maybe I’m wrong…but I thought that independent contractors who earned more than $400 in the year had to file incme taxes. Sort of like being self employed, right?
He should have filed a return. It’s not too late. He likely owes 15.3% self-employment tax on all earnings as a golf caddie. Possibly some state income tax too.
Isn’t he hoping for an Evans Scholar scholarship? Seems odd to apply for a scholarship based on your source of income but not ever file a tax return to report that income.
How many years has he worked as a caddie and failed to file his tax return?
Did he also not report the income on the FAFSA?
Am I misreading this? A dependent teen does not need to file tax returns unless they earned more than $6200?
^That’s for income tax only, this student owes self-employment tax.
http://www.irs.gov/uac/Schedule-SE-%28Form-1040%29,-Self-Employment-Tax
Try the irs.gov website, not some random, inaccurate article from Schwab.
Will he get penalized on fafsa now because we checked that he wouldn’t file? Ugh Uncle Sam just wants to keep taking what little we have. X_X
Just correct the FAFSA to ‘will file’ or filed (whichever is correct).
What do you mean ‘penalized’? Did he originally indicate he earned zero income for 2014? What about for amount on hand the day the FAFSA was filed?
No we put that he earned 1100, but he didn’t have that much on hand because he spent some of it.
I filed a return on H&R block for free. He will owe $123. Will this negatively affect the fafsa? I originally said we wouldn’t file and now we did.
That is fine. It would be a question if he said you did file, but then changed the status to did not file. It is a simple adjustment to make on your end.
Ok thanks. Will I be able to do the DRT tool once the return is accepted. I thought this fafsa was a piece of cake. It has turned out to be a nightmare really.
Did you pay the $123 owed when you filed the return? It will be a minimum of one to two weeks after the payment clears before you can use the DRT.