Yes, he is my dependent. Though, because he's always had unearned income, I have always filed his taxes separately. The problem was getting the $7,000 recognized as earned income because he falls into that 19-23 age range which as my dependent requires he use my tax rate. Once I got the income on the Schedule C, that made the difference I was looking for. It was included to determine his Standard deduction.
The Self-Employment tax is the cost of having your own business, a good lesson for him to learn early. Hopefully, he'll do a better job of recording expenses.
Thanks!
