I want to claim myself as independent rather than dependent. The net change between the original and amended return is negative. Do I owe money if the change is negative?

[deliciouslyeric]

I'm trying to amend my 2019 tax return to see if I can receive the stimulus check. When I finished the amending process, it says that my net change from the amended return compared the original return is negative. Does this mean I would owe money to the IRS? For example, my taxable income  went from -$350 to around -$6,400. I thought that I would get an increased tax return since I provide more than half of my own support and am a full time student. If my net change is negative for multiple tax incomes, should I just not amend my 2019 taxes? Thank you very much!

[Opus 17]

First of all, if you can be claimed as a dependent by another taxpayer, you must check the box that says you can be claimed, even if you don't want to be, and even if the other taxpayer agrees not to claim you.  To claim a stimulus payment under false pretenses is fraud, plain and simple.  (The question is not "are you independent" the question is "can you be claimed as a dependent by someone else.")

There are very specific rules to be claimed as a dependent.  If you are under age 19, or under age 24 and also a full time student, you generally can be claimed as a dependent by your parents unless you provide more than half your own support.  If you are 24 or older, or 19 or older and not a student, you can be claimed as a dependent if you have less than $4200 gross taxable income and someone else pays more than half your support.  Full rules are here https://www.irs.gov/forms-pubs/about-publication-501

If someone did claim you as a dependent and they don't also amend their tax return, that will trigger an IRS investigation of both of you. 

Second, it is almost impossible that if you amend your return, it will result in a stimulus payment, since amended returns take 4 months to process when the IRS is not backlogged, and they are way backlogged this year.

Third, as best we know now, the stimulus will be recalculated on your 2020 tax return and if you qualify then, we think you will receive the payment added to your refund, if you did not receive it now. 

Now, as far as your numbers are concerned, you get the same $12,200 personal exemption whether you are a dependent or not.  Your income is what it is, and is taxable either way.  I can only think of two things that might change your income and tax owed based on checking or unchecking that box. 

1) if you are a college student with a 1098, your tuition credits are claimed by your parents if they claim you as a dependent, and by you if no one can claim you as a dependent.  However, if you have  a scholarship that is more than your tuition and fees, that is always taxable income to you.  Did you change some entries related to a 1098 when you prepared the amended return?

2) if you have investment income in your name, it may be taxed at your income tax rate or your parents' rate depending on how much income it is.  This is the "kiddie tax" and was created to keep parents from putting investments in their kids name just so that the income would be taxed at a lower rate.

You need to print your original form 1040 and schedules and your amended 1040 and schedules and compare them side by side to see what changed.  No one on this forum can see your tax return. 

[VolvoGirl]

Your taxable income on 1040 line 11b can not be less than zero so I don't know where you are seeing the negative amounts.  And your Standard Deduction can be less than the 12,200.  

The Standard Deduction for an individual for whom an exemption can be claimed on another person's tax return is limited to the greater of:
…..$1,100 or
…..Your earned income for the year + $350 (up to the max of 12,200)

So you would get a minimum of $1,100 up to the max of 12,200.

So by claiming yourself your SD might have increased up to the full 12,200 thereby reducing your taxable income (but not to less than zero).  

[deliciouslyeric]

Hello! Thank you for your very detailed response. So, I believe I am able to qualify as independent since I did provide more than half of my own support for the year of 2019. My parents have not submitted their 2019 tax return for the year yet. When I first did my tax return, I wasn't sure what my status was and I just listed myself as able to be claimed as a dependent because it is what I did for my 2018 tax return. Based on your response, I think I need to amend my tax return since I'm no longer labeled as a dependent to my parents. I do have a 1098-T form without a scholarship. My parents helped pay for my tuition, but I paid for my own living expenses. If I read the IRS requirements correctly, I'm considered independent based on that, is that right? Or does having my parents pay for my tuition automatically consider me as dependent, even if I pay for my own living? I apologize for having so many questions in these regards. Since my initial tax return was accepted and I received the tax return, does the amended tax return in my original post make sense where the net change is negative and does this mean I would owe this negative net change amount to the IRS? I don't believe that I have an investment income under my name either. Thank you for your time, I really appreciate it!

[CatinaT1]

Look back at Opus17's response.  CAN you be claimed as a dependent?  I'm guessing since you are a student you are under 24 and can be claimed by your parents.

[Opus 17]

As a practical matter, if you don't check the box, and your parents don't claim you, then there is no conflict and the IRS is unlikely to question it.  

As a strictly legal/tax code matter, you may have to actually add up all your costs.  Publication 501 has a worksheet that may be helpful.

Support you provide yourself includes money you earn that you use for your own support, and it includes student loans you take out in your name (this counts as support you provide to yourself because you have promised to pay the loan back.). Support your parents provide to you includes a percentage of the costs of running their home (if you are still considered to live there because you return home over summers, they keep a room for you, you haven't permanently moved out), and monetary support paid for your tuition, food, clothes, travel, and medical expenses.  If they carry you on their medical insurance, the premiums count as support provided to you.    Add everything up and see where it goes.