Do I have to file independently for 1099 forms as a dependent?

[plee47]

I am claimed as a dependent, as I am a 22-year-old full-time student. I haven't had to file before due to not earning enough income from work. However, I had a Robinhood account opened last year under my name which was used by my parents with profits close to $2000. I suspect that I have to file for this independently, as it's considered unearned income. Is this the case, or should I just give the 1099 forms to my parents to do the rest? I've tried asking this to the IRS and they hung up on me every time.

[Bsch4477]

If the income on the forms has your social security number you have file your own return. Be sure to indicate on your return that someone else can claim you. If your unearned income is more than $2,200 it will be taxed at your parents’ rate (Kiddie Tax). TurboTax will walk you through this. 

[GeorgeM777]

To follow-up on the comments from @Bsch4477, it appears you will need to file a tax return given the facts.  Because you can be claimed as a dependent by another taxpayer, your standard deduction for 2021 is limited to the greater of: (1) $1,100, or (2) your earned income plus $350 (but the total can't be more than the basic standard deduction for your filing status).  Thus, you will likely not be paying tax on all the gains from the Robinhood account, but there will be some tax to pay.  

@plee47

[plee47]

Thank you for your response. I would like to elaborate on some previous details and be more certain about how to go forward with this. The 1099 forms I received from Robinhood reported a gain of $2700 for securities and a loss of $570 for crypto. I now strongly suspect that I have to file independently, but I would like to know for sure again.

Previously, the 1098-T form was claimed by my parents as they paid for my tuition and I am a dependent who didn't have to file before. Given that I have to file independently now, would I have to claim the 1098-T form myself or leave it the way it was before? Lastly, I would also like to know if there is any package on TurboTax that allows taxes to be filed for two people. As of now, my family is using a package for one.

Thanks again for your time.

[ErnieS0]

You have to file your own tax return but you are not filing independently. You are filing a tax return as a dependent. To file independent, you will have to be self supporting.

Some dependents file a tax return. As Tax Champ @Bsch4477 said, "Be sure to indicate on your return that someone else can claim you."

TurboTax will ask you whether someone can and will claim you as a dependent. Say Yes to both questions.

Your parents will claim your Form 1098-T because you are their dependent.

TurboTax CD/Download allows you to e-file up to five federal returns, so you and your parents can use the same license. You can install CD/Download on five different computers.