My mom won $5000 and I signed for it because she didnt have her ID?

Question

So, will this hurt me on my taxes. I only made like 1500 this year because Im a student, so what is this going to do

oh and i have a daughter that i will be claiming

Answer 1

If your mom has other income subject to tax, you are better off claiming the prize as yours. Your income including the prize is too low to have any tax liability.

Your signing for the prize may not matter. The prize distributor will send a 1099 form to the winner. If they send it to your mom, she will have to declare it and pay tax on it.

Answer 2

The income officially became yours, and you'd report it on your tax return.

But I do have another question - if you only made $1500, how did you live and support a child? Did you live with your mom? If so, it's very possible that she can claim you AND your daughter - and if she can, you can't claim yourself or your daughter, and would owe around $115 to the feds.

Answer 3

Are you a qualifying child of your mother? You are if you are a full-time student under age 24 who lives with your mother more than half of the year. If this is the case, your mother can claim you on her income taxes. If your mother claims you, you cannot claim your child. This leaves you with zero exemptions, so if the $5,000 is assigned to you by your SS number, you will owe taxes of about one hundred dollars.

If you are not a qualifying child of your mother, then you can file yourself and claim your child. You will owe no tax even if the $5,000 is assigned to your SS number.

Answer 4

The person who had the income is the person obligated to pay tax on it regardless of how it got reported. If a 1099 is issued with your Social Security Number you should attach an explanation to your return stating that the prize was your mothers and she reported it on her return and be sure she does.