No, I didn't pay for more than half of my living expenses with earned income.
In 2019, I was a full time college student for the whole year (aged 20-21) and my parents paid for my rent, car, and food. I tried to start an affiliate marketing business that, to my surprise, turned out to actually be profitable. However, I just saved all the money and did not use it to fund my living expenses.
The only honestly answer this question is "no." However, if I say "yes" my taxes owed go up substantially. Why is this? Is there some sort of deduction if you do not support yourself?
At first I thought this was about the Kiddie Tax, but saying no would make your tax burden go up instead of down like it's doing for me. And my income is earned from self-employment so that shouldn't matter. My understanding is that the Kiddie tax asks about IF you make more than half your expenses and it doesn't matter who actually pays them while this question is about who actually pays them.
So I guess I'm asking:
I am good to say no to this question regardless of how much money I made, right?
Why is my tax burden so much lower if I say no? I would think it should be the opposite.
Thank you.
