Son earned $500 US building a deck for a friend -

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My question is: US-specific
QUESTION: I am working on my college-age son's income tax return.  Last summer, in addition to his regular summer job, he helped a friend build a deck, for which he was paid $500 cash.  Unable to figure out what to do with it on a tax form, I called IRS.  I was shuffled around to no less than 5 people.  The last person told me:  1) file the long form, 2) record it as 'business' income, because my son would be considered an 'independent contractor', 3) he will have to pay $70 in Social Security and Medicare taxes.
Is this the only way?  I'm betting my son will be less inclined to help a friend in years to come with this ridiculous nonsense.
Thanks for your help.
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david ingram replies:
Your son should be  doing his own tax return.  
However, he is also an independent contractor and subject to about 16% Social Security plus 15% income tax if he made enough to be taxable.
Fill  in a long form 1040, a schedule C (there may be expenses for driving there, etc.) and a schedule SE 
Because the same thing happens in Canada, he would have to fill in a T1-General, A Schedule T2124 and a Schedule 8.
Hope this helps.
PS:  The reference to our Premier (your governor) Glen Clark's Fall From Grace involved a friend of the premier of BC.  The friend, Dimitrios Pilarinos, built a deck for the Premier of the Province of BC at the same time that he had an application pending for a casino licence.
Premier Clark ended up resigning over this and was prosecuted  for accepting a bribe.  He was found not guilty but it was a delicious scandal for years.  Personally, I  thought the  premier was prosecuted maliciously.  Sitting through several days  of the actual  trial confirmed my  opinion.
You can see more (if interested) at: http://www.gamblingmagazine.com/articles/29/29-239.htm
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