Dependent

[Alh0006]

My Mom wants to take me off on her taxes as a dependent. Here's the situation.

I am 31, the sole proprietor of a business since October and I have had income from eBay all year. The house I live in has both of our names on the deed and is paid off. It's her secondary home and my primary. I pay for all of my basic costs except she pays the electric bill and water as well as various other things like Netflix which she uses elsewhere but I have access to. She loaned me 13, 000 with a five percent interest rate which she took out of a retirement account. The money was used for various costs with my business. 

My question is whether or not paying the electric bill legally qualifies me as a dependent and if it is legal then where does that leave me with my taxes?

She did take me off as a dependent last year for the first time since college because I was out of work for a year and in 2019 she did pay more than half of my keep. 

[Bsch4477]

To claim you, you could not have earned more than $4,300 and she would have to have paid more than half of your support. 

[Alh0006]

That's about what I figured. It seemed bizarre to me but she keeps insisting she can.

[Bsch4477]

If you can’t convince her you should file as soon as possible because if she files first and claims you, your return will be rejected. 

[Alh0006]

What would happen with my taxes if she already has filed? I don't think she has but I can't be 100% certain of that. I make about 2,000 a month on eBay and in October, November and December the in person business made about 3500 per month on top of that. Since I am self employed I knew I would owe money since it hasn't been coming out but if I can't declare myself...

[Bsch4477]

If she claims you then your return will be rejected so you would have to mail it and wait for the IRS to contact both of you for clarification.  That process might take many months.