Did your earned income exceed one-half of your support?

[Charlotte7598]

I was looking at prior year tax returns, and in tax year 2020, I made a little over $14,000.  I see a box with the question stated in the subject line, and it looks like I checked no. That seemed right at the time but now I'm not 100% sure. I lived with my parents at that time and was claimed as a dependent. Do you think that answer was accurate, and if not, does that make a significant difference to my tax outcome and should I amend it?

[leeloo]

The best way to determine support is to use the worksheet. You can list everything and see how much you actually received in support vs what you provided.

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

[Cynthiad66]

If I am understanding your question, you feel you checked that you did not provide more than half of your support in 2020.  It depends on many factors whether it could make a significant difference.

Here is a way to determine whether you provided more than half of your support.  You total up all your expenses and compare it to what you earned from employment, typically money reported on a W-2 or 1099-MISC. If that earned money was at least half your expenses then the answer is Yes.

I do not know all of the particulars about your cost of living situation in 2020, but since you were living at home with your parents, it could be very close as to who is entitled to the dependency exemption.  You have to consider whether you paid rent or did they provide free, any college expenses paid by parents etc.  

Also, consider whether your parents claimed you and what changing your return will do to their taxes.

To determine the actual amount you can go into your 2020 to prepare an amended return to claim yourself and any other relative deductions.  Prepare it just to see the difference you do not half to file it.  You will then see what your refund would have been if you filed differently.  However, remember this might affect your parents return.

@Charlotte7598 

[Charlotte7598]

Hi Cynthia,

Thank you for your response! I am certain my parents provided more than half of my support, I didn't pay any rent or anything during that time so I know they could claim me. My only question is that if my earned income was more than half of that support, does that make any difference and should I bother amending it?

[KrisD15]

Additionally, it does not matter if you had earned income, only the income you spent on your own support matters. 

For example, if you put all your income into a savings account, you would have supplied zero towards your own support, no matter what you earned. 

From your description, it sounds like your parents supported you and it was correct that you were claimed by them as their dependent. 

If you are unsure, you can use the IRS worksheet for support, but it sounds like the 2020 Tax Year returns were handled correctly. 

And as Cynthia points out, your parents' return would also be affected if you changed your 2020 return, so you might want to go over it with them as well.

Support Worksheet 

[Charlotte7598]

Thank you. I figured I was correct being claimed as a dependent due to the support provided. They just asked dependents if their income exceeded half of the support that was provided and I just wasn't sure if I answered that question correctly or if that question mattered as much.

[Carl]

If you were a student for any one semester that started in tax year 2020, it is highly unlikely you provided more than half of your own support, meaning that your parents qualified to claim you as a dependent on their own tax return. Having lived with your parents that year and with only $14K of income, I seriously doubt you came anywhere close to providing more than half of your own support. It's possible that your tuition alone exceeded $14K for the tax year.

If you go back and change that now, you risk the possibility of both you and your parents being audited. Especially if your parent's claimed you as a dependent on their 2020 tax return.

[MANI1346]

Hi .

I have a question, my son earned income is $24000 he is under 24 and full time student , he insists to file independently so I should not claim him on my tax return. on form 8863 asks :  where you full-time student he marked yes and did your earned income exceeds half of your support he marked NO,

and last question on 8863 asks ; one of your parent alive he marked YES 

do you think IRS forces him that should be claimed by me or it is not matter.

If he marked NO for support part he lose a $1000 as well. Also, this way does make any problem for scholarship or other grants which he will be receiving from his school?

thanks for help

[Vanessa A]

Basically, you need to answer the question honestly.  If his earned income was less than half of his support,  he is not eligible for the $1,000 refundable credit.

This does not mean that you MUST claim him as a dependent.  You still do not have to, however, he cannot get the $1,000, but he can claim the non-refundable portion if he has a tax liability.  If he has no tax liability, then he will not see a benefit from the AOTC.