Claiming Boyfriend As A Dependent

[SuburbanGal]

I want to claim my boyfriend as a dependent when I file my taxes in 2021. He meets 3 of the 4 criteria. He’s not a “qualifying child” of a taxpayer, I provide more than half of the total support for the year and he’s living with me all year. 

However, he’s been doing junk removal work since February. He’s on call (works when needed) and is paid in cash by his boss. He’s considered an independent contractor and will be issued a 1099. He’s already made just over $6,000 doing junk removal.

It’s my understanding he can’t exceed $4,200 as IRS standards dictate he’s able to take care of himself financially if he exceeds that amount.

I’m sorry but $4,200 won’t pay rent anywhere in this country.

Despite his junk removal earnings, I take care of all his needs. I pay for his cell phone, I pay his individual dental and vision insurance through UHC, I pay his court costs/fees, I paid for the alcohol and drug assessment the court required him to get (that alone was $300) and I pay for him to eat day in and day out along with buying his cigarettes and whatnot. I pay for virtually everything because he’s unable to take care of himself financially. Is there a way I can still claim him as a dependent?

[VolvoGirl]

Sorry that is one of the rules.  Complain to your congressman.

See IRS Publication 501 starting on page 10 bottom Dependents

https://www.irs.gov/pub/irs-pdf/p501.pdf

Who can I claim as a dependent?

https://ttlc.intuit.com/community/credits-and-deductions/help/who-can-i-claim-as-my-dependent/00/267...

Who you can claim article

https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODb...

[Opus 17]

“ I would like to only follow the tax laws that I agree with.“

Sorry, it doesn’t work that way.  

[Critter-3]

The way I see it is you have 3 options ...

1) marry him so you can file jointly

2) kick his sad butt to the curb

3) deal with it as it is  until congress changes the laws

[macuser_22]

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@SuburbanGal wrote:

I’m sorry but $4,200 won’t pay rent anywhere in this country.

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The $4,200  has nothing to do with paying rent.  It is based on the old "personal exemption" amount so once your income exceeds the personal exemption, you can no be claimed any more.

Also, the MOST that you can receive for this type of dependent (if you could claim him) is a $500 credit against your tax.

In addition, if he does not know, being an independent contractor earning more then $400 means that he is *required* to file a tax return and pay the SE (Social Security & Medicare) tax on the amount over $400.  Unless he has expenses that reduce the income, the  SE tax on $5,600 (6000-400) would be about $840 (15.3% of $5,600).

[VolvoGirl]

@macuser_22  I know you don't pay SE tax on $400 or less Net Profit but if you have more then don't you pay it on the whole amount?  I think the 92.35% refers to something else.

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.  

[Opus 17]

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@VolvoGirl wrote:

@macuser_22  I know you don't pay SE tax on $400 or less Net Profit but if you have more then don't you pay it on the whole amount?  I think the 92.35% refers to something else.

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.  

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If you have to file a tax return for any reason, you must report and pay tax on all your income.  So here, the boyfriend will owe about $900 (so far) based on gross income of $6000 and no expenses.  (Under $12,400 of net profit, he will owe no income tax but will owe self-employment tax.)

The exact tax formula is, I think, 7.65% of net profit, plus 7.65% of 92.35% of profit.  I just say "roughly 15%" and it's close enough for discussion purposes.

The taxpayer did not ask, but the boyfriend should be keeping records of any work-related expenses, so they can be deducted on schedule C to reduce the taxable profit.  

[VolvoGirl]

I was pointing out that you don't subtract out the first $400 as macuser said. See Schedule SE section 2 line 4a.  It is on 92.35% of the Net Profit on line 2.

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf