If he uses a home office (a space devoted 100% to business related activities), then he's entitled to take the deduction. But if he lives with someone else (and hard to live on your own with $12,000 in income), and they pay the rent or mortgage, he would not be entitled to the deduction. You can only deduct expenses -- which means if having a home office costs him nothing, he has nothing to deduct.
He'll put the 1099 income total on a schedule C for self-employed. If there's no expenses, there's no expenses, and his social security/self employment tax will be imposed on the full $12,000.
I think you're not understanding what I'm saying, either.
There's no way around him paying self-employment taxes. No way at all. It's due on all net income from self employment. (With a small exception, I think for the first $400 of self-employment income.
If he is truly self-employed, his record of mileage would be important, as he could deduct that expense, which would lower his self-employment taxes, as it would reduce his net income.
Self-employment and FICA taxes are NOT related to income tax. They basically are just paid to the same entity, the federal government. I suppose they are on the same form for the sake of convenience.
I will reiterate my earlier advice, which is actually the ONLY advice anyone should ever take on a public forum: HE NEEDS A TAX PROFESSIONAL.
edited to add: And don't have him bother calling IRS with his questions. If you call 5 times and ask the exact same question each time, you may get 5 wildly varying answers. None of which may be correct, and none of which are binding. The only thing binding from the IRS is if they will put it in writing and mail it to you. And I've only succeeded in getting one written ruling in over 50 years. And THAT was a battle.
Edited 1 time(s). Last edit at 02/22/2019 08:07PM by ceasesmith.