Tax Help/Question?

[WendyZ]

We had an accountant do our taxes this year b/c it was our first year with DD in college. So they are all done and have been e-filed. Yesterday in the mail I receive a 1099-MISC for a computer she won.(that I never even thought about) Agh! I know how to do an amendment, so that's no problem. Here is my questions:
1. Everything for college was filed under our tax return (DH&myself), even though the paper work was in her name. The accountant said that we had to do it that way because we still claim her (no problem there). So I am assuming the amendment would also go under our taxes even though the 1099-Misc is in her name? Right or wrong?

2. I noticed this morning that the accountant filed us a 1040A (I have always filed a 1040-even though we don't itemize). I have read a few places on the internet if you have a 1099-MISC, you have to file a 1040. What would I have to do here? Or is this not important as long as I amend the form? It also
said if you have a 1099Q to use 1040, but he still used 1040A. So I am confused.

Thanks for any help you can offer. I really don't want to call him again. I already had to go twice because I didn't know to look for some forms I was missing for DD with college. I feel like fool not even thinking about the computer. I know how to do an amendment, so that's no problem. Just want to make sure it goes under our return and I was wondering about the 1040A situation. If worse comes to worse I can call the IRS, I'm afraid they'll confuse me more. Thanks again!

 

[WendyZ]

Anyone????

 

[Free4Life11]

I don't think you should include that on your tax return since it wasn't your income. You get your daughter's exemption and corresponding deductions/credits for college expenses because you claim her as a dependent. You are paying the majority of her expenses, therefore you get the deduction/exemption for paying these expenses.

I know parents can elect to include their childrens interest/dividends if the child meets certain circumstances, but I don't believe you can do this for your child's income.

How much was this 1099-MISC for? I believe your daughter should fill out a 1040 and do the worksheets to see if she even needs to file a return. Did your daughter have any income last year?

Here is a worksheet to determine the standard deduction for a dependent:
http://www.irs.gov/publications/p929/ar02.html#en_US_publink100026067

 

[WendyZ]

The 1099 was for $1155. It was for a computer she won last fall at college. She did file a 1040 as she works part time. She made enough that she had to pay a little bit in taxes and then received a refund for the rest.

I understand we get to claim her b/c provide majority of her expenses. Is that why we got to claim the college tuition as well? That's all we claimed, her and the Hope credit for her college tuition.

So if that right, then the 1099MISC would be considered prizes won under her. Therefore it would go on her taxes for 2008? Right or wrong?

Thanks!

 

[NJHOO]

If the 1099MISC was issued in her name and social security number then $1,155 is included on her 2008 tax return.

 

[WendyZ]

Thanks! This is making sense now. Because it's income, it would be no different than a W-2. There saying it's money she made/won, etc. Therefore on her return, because it's INCOME even though it came from college.

 

[NJHOO]

You are correct, the fact that the payer of the prize is a college has nothing to do with the fact that it is taxable income. For example, if she won it on "The Price is Right" they would issue her the 1099MISC. If she already filed her return, it will have to be amended to include this prize income.