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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2928
Experience:  IRS licensed Enrolled Agent and tax instructor
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My wife and i will be filing jointly. Our daughter won 1500

Customer Question

hi, my wife and i will be filing jointly. Our daughter won 1500 prize money at a piano competition last year when she was 15. now she is 16 by the end of the year 2015. does she have to pay taxes on the prize money?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

No, she doesn't. She can earn up to $6300 without having to file a tax return, unless she is paid as independent contractor (1099Misc - box 7 - nonemployee compensation). I am assuming the price was reported to her on 1099Misc - box 3 - other income. Unless federal and/or taxes had been taken out, she doesn't have to file a tax return.

Expert:  emc011075 replied 1 year ago.

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Customer: replied 1 year ago.
They did not provide us a 1099 saying it is not needed because she does not have to pay taxes on the money. Do I have to even show the money on my tax return?
Expert:  emc011075 replied 1 year ago.

No, you don't. You do not need to claim her income on your tax return.

Customer: replied 1 year ago.
my daughter does not have to do her tax return, and I do not have to include her into my return either. Is this correct?
Expert:  emc011075 replied 1 year ago.

Income received or reported to dependents is reported on depends return, not the parent's return. As long as the income is not reported on 1099Misc in box 7 - nonemployee compensation, than no. She doesn't need to file and you definitely don't need to report it on your tax return.

Expert:  emc011075 replied 1 year ago.

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