Hi,
My 19 year old son does DoorDash and has investment income from stocks he sold. We live in California. Although he is a full-time student, we are NOT going to claim him as a dependent, because the benefits to us are phased out due to our income level. He is filing a separate tax return because his income was about $14K. He has a 1099-NEC from DoorDash. We are checking the boxes: "someone can claim me as a dependent", but "no one will claim me as a dependent in 2020"
I did have a couple of questions/confirmations:
1. I believe he is considered a sole proprietor and therefore TT is creating a Schedule C
2. He can legally claim the insurance paid on the car he drives for DoorDash (even though the car is not in his name)
3. He cannot claim his cell phone bill because he doesn't have a dedicated home office
4. TT says he qualifies for the "American Opportunity Credit" of $2500, even though we support him (we stated that he receives more than 50% of his support from someone else). Does that sound right?
Thank you!
