18 and Dependent W-9

[ViviO]

I am 18 but my parents have me filed as a dependent. So far with my independent employer (an online gaming company where I create 3-D objects and animations), they have rejected my W-9 when I filed as an individual but I do not know if that is why I was rejected. They told me that my information does not line up with that of the irs, and when I went to create an account with the irs, I was told they could not verify me once I noted that I have no credit or money verification... (this is my first "job" and I'm not sure where to go from here)

[xmasbaby0]

Please explain what you mean --or think you mean -- by "I filed as an individual."    At the age of 18 you can still be claimed as a dependent on your parents' tax return.  Did you try to indicate otherwise to the the gaming company?

[VolvoGirl]

Do you mean the IRS Rejected your 1040 return?  The W9 is the form you give the company that pays you to give them your ssn so they can give you a 1099Misc at the end of the year (instead of a W2).

When you filed your return did you say you were a dependent?  You need to check the box that says you can be claimed on someone else's return.  It is too late to fix it and efile it again.  Now you need to print and mail it to the IRS.

[xmasbaby0]

https://ttlc.intuit.com/community/forms/help/what-is-a-w-9-and-what-do-i-do-with-it/00/26161

https://www.irs.gov/forms-pubs/about-form-w-9

https://www.irs.gov/pub/irs-pdf/fw9.pdf

[xmasbaby0]

Trying to figure out what exactly was rejected.  You would have correctly said on a W-9 that you are an individual--not a corporaton, etc.  Did you use the correct Social Security number?  Did you actually file a tax return--is that what was rejected?  You have to say on your own tax return that you can be claimed as someone else's dependent.  Did you try to e-file and the return was rejected?

Please explain more so we know how to help.

[ViviO]

I am sorry, I am quite new to this, so my terminology may have been incorrect. I did not file a tax return, but I submitted the W-9 that the employer requested. On the W-9 in line 3, stating,

"Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the following seven boxes."

Here, I selected individual, as in "Individual/sole proprietor or single-member LLC"

I know for a fact that I am claimed as a dependent on my parent's tax forms, but I don't know if that has something to do with why my w-9 was rejected... does it?

[ViviO]

I apologize for not being so clear. My employer requested a W-9 and that was the form that was rejected. They informed me that my information does not line up with what the IRS has, but I was not able to create an account with the IRS and I have no past tax records.

[xmasbaby0]

If you were providing a W-9, you did not have an "employer."  They intended to treat you like an independent contractor and issue a 1099NEC or 1099Misc to you.  That means they would not withhold any tax, Social Security or Medicare from your paychecks and you would have to pay it all yourself when you filed a tax return.

So..it sounds like the job just did not pan out.  What they say did not match is a mystery--since you have never filed a return before.  All the IRS would have for you would be the SSN, etc  that your parents have used when they have claimed you as a dependent.  

But----did you do any work for this gaming company?  Did they stiff you and not pay?  

And....you mentioned being 18.  Your parents can claim you as a dependent until you are 19, or until you are 24 if you are a full-time student.  Here are the rules so that when you do find a job and have a tax return to file --you will know.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2020 taxes as long as they meet the following requirements:

Qualifying child

• They are related to you.

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

• They are not filing a joint return with their spouse.

• They are under the age of 19 (or 24 for full-time students).

• No age limit for permanently and totally disabled children

  •      They live with you for more than half the year (exceptions apply).

Qualifying relative

• They don't have to be related to you (despite the name).

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

• They are not filing a joint return with their spouse.

• They lived with you the entire year.

• They made less than $4300  (not counting Social Security)

• You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

• Does a dependent have to live with me?

• What does "financially support another person" mean?

• Can I claim a newborn baby?

[ViviO]

Thank you for this clarification! Yes, technically I am not employed, but right now I do these creations and I "earn profit" in the currency of the game - which is practically useless to me now. They give the option to earn real USD, so I think pocket money will be useful for college. There is one thing I forgot to mention... I did not include my middle name on the w-9 - this is necessary, isn't it?

Thank you again.

[xmasbaby0]

Maybe the lack of a middle name or middle initial would have caused a mis-match.  I am not even sure.  I know nothing about how such sites work or how a gaming company pays in "currency of the game" as opposed to real dollars.  You might want to explore other ways to make some pocket money for school  -- in real money.  Good luck to you!

[NCperson]

Suggestion: On the W-9, list your name EXACTLY as it is listed on your social security card. And when I mean EXACTLY, middle name, etc.  Did you do that and if not, I bet that was the issue.