My dependent received a 1099-NEC

[Nicolesuccess80]

I know that my dependent needs to file her own tax return because she received a form 1099-NEC ($3,600).  

My question is: If she does file her own tax return for 2020, am I still able to claim her on my own tax return for 2020 being that she was still in HS during the Spring of 2020 and I was taking care of her?  She was 19 years old during that time.

Thank you.

[MinhT1 · Accepted solution]

Yes, if you provided for more than half of her support in 2020 and as she earned less than $4,300, you can still claim her as a dependent.

[Nicolesuccess80]

Thank you so much! This has been extremely helpful.  Now, I can continue my filing through TurboTax!  Have a great day!

[RonaldDotson]

Thanks a lot.  My 16 year old dependent is in high school and earned $1,500 during 2021.  I had added her 1099-NEC to my Turbo Tax account and it dropped my return amount a lot.  I deleted the entry and my refund amount shot back up.  Now I know that I have to file separately for her.

[xmasbaby0]

@RonaldDotson

MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.

You might also want to use free software from the IRS Free File versions:

https://apps.irs.gov/app/freeFile/

[Lolarique]

My dependent received an 1099 nec from 1 job & a w2 from another. She made more than $4,300 on the w2, but much less on the 1099. Can I claim her & do a return for her?

[xmasbaby0]

@Lolarique MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.

You might also want to use free software from the IRS Free File versions:

https://apps.irs.gov/app/freeFile/

[CatinaT1]

Perhaps.  A dependent must meet the requirements of a qualifying child or a qualifying relative in order for you to claim them on your tax return.  

She will be able to file her own tax return.  However, if you claim her as a dependent, she will need to mark that she is being claimed as a dependent by someone.

The tests for a qualifying child are: 

Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew). 

Residence: Must have the same residence for more than half the year. 

Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled. 

Support: The dependent must not have provided more than half of their own support during the year. 

Joint Support: The child cannot file a joint return for the year. 

The tests for a qualifying relative are: 

Qualifying Child: They are not the “qualifying child” of another taxpayer or your “qualifying child.” 

Gross Income: The dependent being claimed earns less than $4,400 in 2022. 

Total Support: You provide more than half of the total support for the year. 

Member of Household or Relationship: The person (a friend, girlfriend, non-blood relative) must live with you all year as a member of your household or be related to you. 

TurboTax software will ask you simple questions and give you the tax deductions and credits for which you are eligible based on your answers. 

See also these TurboTax Help articles. 

Who Can I Claim as a Tax Dependent? 

Rules for Claiming a Dependent on Your Tax Return 

You may also want to view IRS Publication 501. Dependents, Standard Deduction, and Filing Information page 11 for 2022 

[VolvoGirl]

How old is she?  If she is under 19 or under 24 and a full time student you can claim her.

She has to file her own return for it.  The 1099NEC is self employment income and goes on Schedule C in her 1040.

You don't include their income on your return. It would only go on their return if they are required to file one.  To file a separate return for your dependent you need to set up a new account.  Online is only good for one return per account.  You can use the same email address for 5 accounts.

How to start a new online return

Https://ttlc.intuit.com/questions/1894512-how-do-i-start-another-return-in-turbotax-online 

Be sure on their return they check the box that says they can be claimed on someone else’s return.