Question about filing taxes?

Question

I started cleaning houses in January with my mom and I make about $300 a month. I live with my boyfriend (2 years now) and he pays all the rent and pretty much everything else. He wants to know if he can claim me as a dependant. Can he? If he can do I still need to file? What forms do I need to fill out? I have no idea what to do with my taxes. I don't quite understand what papers I need to fill out. Please help! Thanks

Answer 1

Probably not. To claim you as a dependent you must meet all of the following tests:

1. Live in his home all year.
2. Receive more than half of your support from him.
3. Have less than $3,400 in GROSS income
4. You must not file a joint return with another taxpayer.
5. You must not be the qualifying child of another taxpayer.
6. Your relationship must not be illegal under local law. If there is a law against cohabitation, even if unenforced, he cannot claim you.

The one that will probably get you is #3, as you must use your GROSS income for the test. Even though your taxable income may be less since you're self-employed you are not allowed to deduct your business expenses in meeting the gross income test.

Since you have more than $400 in self-employment income (I'm assuming a partnership with your mother, correct me if I'm wrong.) you must file a tax return. You probably won't owe any income tax but you WILL have to pay self-employment taxes at 15.3% of 92.35% of the net profit from the business activity. Assuming that you net out about $3,000 you'll owe about $424 in self-employment tax.

Answer 2

He can only claim you as a dependent if your income for the year is under $3400 total, and you are probably over that. So no, he can't. If you make under $3400 for the year, live with him all year, and he pays over half of your support, then he can most likely claim you.

You need to file a return if you make $400 for the year or more. You'll file a 1040 schedule C or C-EZ showing your income and associated expenses, a schedule SE to calculate your social security and medicare tax payments, and a form 1040 to calculate your total tax. You probably won't owe any federal income tax, but will owe self-employment tax (social security and medicare).

Answer 3

these questions are best not to be asked to the general public. tax forms are a good way to get into money troubles. my suggestion would be to use a tax software program if you want to do it yourself, or go to a professional. If you are going to use a program, i would suggest turbotax as i have had a good experience with them for (something like) 5 yrs. If that money for cleaning houses is not reported on a W-2 you don't need to claim it as far as i know... but i'm not a CPA.