topic Claiming a full time student that owns a LLC in Get your taxes done using TurboTax

Claiming a full time student that owns a LLC

TF1999 — Tue, 11 Feb 2025 22:52:02 GMT

My son started a LLC this year and he made $1900 this year and is 18 and a full time college student and I pay over half of his expenses. Can I claim him as a dependent on my taxes or does he need to do his own with the business?

Re: Claiming a full time student that owns a LLC

SusanY1 — Tue, 11 Feb 2025 22:56:15 GMT

You should claim your son as a dependent since he is a full-time student under the age of 24.

However, he will also need to file his own tax return to report his self-employment income. When he prepares that return be sure to let him know that he needs to indicate that he is a dependent on another person's tax return when he does, so that you will both be able to successfully e-file.

Re: Claiming a full time student that owns a LLC

TF1999 — Tue, 11 Feb 2025 23:29:56 GMT

He is worried he won’t get the deduction. Will he still have to pay in with only getting a 1099 for $1900? Will he still be required to pay Social Security and Medicare taxes?

Re: Claiming a full time student that owns a LLC

VolvoGirl — Tue, 11 Feb 2025 23:36:40 GMT

What deduction? He will still get the Standard Deduction.

And he will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

Re: Claiming a full time student that owns a LLC

TF1999 — Tue, 11 Feb 2025 23:41:16 GMT

His personal exemption deduction because I will get it if I claim it correct? This is all new to me because he is a full time student and got a 1099 today for his LLC for $1900.00 today. He is just worried about how much he is going to have to pay in.