If my son files his own tax return, can I still claim him as dependent? He has some investment income from UGMA but I support most of his expense.

[mesquitebean]

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[jerry2000 · Accepted solution]

If you son qualifies as a dependent and files his own tax return, then he must properly check the box that says that he can be claimed on someone elses return. The most common error is that the child blows by that question and does not answer it correctly. If the child does that, it creates delay for you and prevents you from e-filing.

Rules for Claiming an Exemption for a Dependent:

- You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer.
- You cannot claim a married person who files a joint return as a dependent unless that joint return is only a claim for refund and there would be no tax liability for either spouse on separate returns.
- You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
- You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative.

Test to be a Qualifying Child:
1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student and younger than you (or your spouse, if filing jointly), (c) any age if permanently and totally disabled.
3. The child must have lived with you for more than half of the year (except for temporary absences such as for school)
4. The child must not have provided more than half of his or her support for the year.
5. The child is not filing a joint return for the year (unless that
return is filed only as a claim for refund).
6. If the child meets the rules to be a qualifying child of more
than one person, you must be the person entitled to claim
the child as a qualifying child.

Test to be a Qualifying Relative:

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer.
2. The person either (a) be related to your in one of the following ways:
Your child, stepchild, foster child, or a descendant of any of them
Your brother, sister, half brother, half sister, stepbrother, or stepsister.
Your father, mother, grandparent, or other direct ancestor, but not foster parent.
Your stepfather or stepmother.
A son or daughter of your brother or sister.
A brother or sister of your father or mother.
Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
or (b) must live with you all year as a member of your household (and your relationship must not violate local law).
3. The person's gross income for the year must be less than $4,000 (social security does not count).
4. You must provide more than half of the person's total support for the year.

There is a very good worksheet to help you determine how much support you provide. It is on page 15 of IRS Pub. 501
http://www.irs.gov/pub/irs-pdf/p501.pdf

[Critter1]

#1 rule to my client's who have dependents  --- make sure the child doesn't file before you do  OR  that they don't file before you approve the return. A child who claims themselves by accident  can delay things by 16 weeks or more or force you to amend returns which is a hassle. I teach them to  grab the child's tax papers when they come in the door so they don't have access to them to file an incorrect return.

[SweetieJean]

"He has some investment income from UGMA"  Does the Kiddie Tax apply?

[Critter1]

It is very possible that may apply and the program will walk you thru the entries.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1900671-understanding-the-kiddie-tax">https://ttlc.intuit.com/ques...>

[haroldbecklin]

what if my son, who did accidentally check that no one could claim him, amends his return? he has already done so, but can i  is go back and claim him 

[SusanY1]

Yes, you can go back and claim him but you will need to mail in your tax return this year. 

Your son will also need to amend his return by filing Form 1040X (also by mail).  There is a good chance his return will have little or no difference as far as his numbers go - depending on his income, but he should amend the return anyway.  

If he used TurboTax to file, he can just sign into his account and choose the option "I need to amend a return that has already been filed and accepted" and follow the prompts. 

@haroldbecklin

[Siglerslodge1970]

Last year I claimed my college son as a dependant on my taxes. He had made $8000 so he filed his own return and did check the box that someone else could claim him. He had to pay over $1200 in self employment taxes. Now I am seeing he may not have needed to even file because of his low income even with me taking his deduction. Is this correct? Is there a way to get that money back? Is it ok for him not to file on his own this year with income under 12000 if he filed last year? Thank you.

[Texas Roger]

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

[xmasbaby0]

@Siglerslodge1970 If your son had even $400 of self-employment income he was REQUIRED to file a tax return and pay self-employment tax for Social Security and Medicare.   

Do not confuse the rules for W-2 income with self-employment income.  The rules are different for self-employment income.   

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

If your son has self-employment income of more than $400 again for 2021 then he must file a 2021 tax return.   If he can be claimed as a dependent for 2021 then he must say on his own return that he can be claimed as someone else's dependent.

[xmasbaby0]

@Siglerslodge1970 And....remember.....if your son had been a W-2 employee, his employer would have withheld Social Security and Medicare from his paychecks.   Your son would not have received a refund for the SS and Medicare withheld from his pay.   He would only have been able to seek a refund for the federal tax withheld in box 2 or the state tax withheld in box 17.   But he had NO tax, SS or Medicare withheld.  That is why he had to pay SE tax.  When you are self-employed you pay ALL of the SS and Medicare.

[Siglerslodge1970]

Ok. So I guess we did do the right thing. Thanks so much.

[jquantrille12]

Can you still file if the son doesn't send in the amended return?

[MarilynG1]

If your son filed as independent last year (and shouldn't have), you are correct that he would need to Amend his return.

If he did not do so, then for 2021 it depends on who files first.  If you file first and claim him as a dependent, his Efile will reject later. 

If he files first and claims himself, your Efile will reject, but you can still mail in your return and claim him as your dependent.

The IRS may contact both of you to determine who filed incorrectly. 

Click this link for more info on Claiming a Dependent.