Income test as Qualifying relative - Gross receipts Schedule C or Total income on 1040?

[cmc4ew]

I have a feeling I'm overcomplicating this but want to be sure I'm understanding correctly (my call to a tax professional just confused me more and I have found a lot of conflicting info)...

I've taken the past few years off of work due to family reasons, and have been a qualifying relative (dependent) for my fiance. In the second half of last year, I took on a small amount of side work that I'm filing on a Schedule C as a sole proprietor.

I know that, as an SP, the income flows through to personal. After going through my filing prep (TurboTax - finished but not yet submitted), the net profit/loss number from the Schedule C is what is listed as my personal "total income" on 1040.

My gross receipts from the side work are slightly over the limit of $5,050 for the gross income test as a qualifying relative. My net profit/loss and what is on my 1040 as total income is under the limit.

Which of these numbers applies to the $5,050 for the gross income test as a qualifying relative?

[RobertB4444]

Line 11 of your 1040 is the gross income used for the test.  And that would include the net income from self-employment.  So, for purposes of this test the net income is what would be used.

@cmc4ew 

[cmc4ew]

Thanks Robert - so to confirm my understanding, that would mean that I would count as a QR, since the net income from the Schedule C is under the $5,050 limit?  Thanks again!

[RobertB4444]

As long as you meet all of the other qualifications of a qualifying relative then yes.

Here's the definition for qualifying relative.

@cmc4ew