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Nicolesuccess80
Level 2

Can I choose Not to file a dependent even though they are eligible?

Hello.  My 20 year old daughter qualifies as my dependent for the year 2020 but, I am debating whether I should add her as a dependent on my 2021 taxes or not.  Typically I would claim her however, I want her to be able to do her own taxes this year (she received a 1099-NEC) to say she is not claimed as a dependent.  I just do not know if this is a good choice or if it even matters.  When I played around with the tax tool, I took her name off my return, I did not see a change in my return amount.

1 Best answer

Accepted Solutions
JeffreyR77
Expert Alumni

Can I choose Not to file a dependent even though they are eligible?

The Tax Cuts and Jobs Act of 2017 changed the impact of dependents on parent tax returns but not the definition of who can claim the dependent. 

 

If your daughter is not a full time student, if she earned more than $4,300 last year then you are not able to claim her as a dependent. 

 

If she is a full time student and you provided over half of her support, she is still considered your dependent.  

 

On your tax return, she may qualify for a $500 dependent tax credit reducing your overall tax bill by $500.  

 

She still needs to file her own tax return if the amount reported on her 1099-NEC is more than $400 whether she is your dependent or not. 

 

She can claim any ordinary and necessary deductions related to the non-employee compensation reported on the 1099-NEC to reduce any income and self-employment tax liabilities.

 

Is She My Dependent?

 

View solution in original post

3 Replies
JeffreyR77
Expert Alumni

Can I choose Not to file a dependent even though they are eligible?

The Tax Cuts and Jobs Act of 2017 changed the impact of dependents on parent tax returns but not the definition of who can claim the dependent. 

 

If your daughter is not a full time student, if she earned more than $4,300 last year then you are not able to claim her as a dependent. 

 

If she is a full time student and you provided over half of her support, she is still considered your dependent.  

 

On your tax return, she may qualify for a $500 dependent tax credit reducing your overall tax bill by $500.  

 

She still needs to file her own tax return if the amount reported on her 1099-NEC is more than $400 whether she is your dependent or not. 

 

She can claim any ordinary and necessary deductions related to the non-employee compensation reported on the 1099-NEC to reduce any income and self-employment tax liabilities.

 

Is She My Dependent?

 

View solution in original post

fanfare
Level 15

Can I choose Not to file a dependent even though they are eligible?

when there are large amounts of EIP involved, you have to think hard about how you file.

To get the stimulus she must not be a dependent on the return of another taxpayer and have a valid SS number.

Nicolesuccess80
Level 2

Can I choose Not to file a dependent even though they are eligible?

Thank you for your response.  This was helpful.

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