I’m a college student and due to covid can’t work, unemployment paid me 21000. I pay my mom 900 for rent/food per month. I didn’t get stimulus, now I can’t claim myself?

Forum|Forum|5 years ago
December 30, 2020
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It says unemployment isn’t considered earned income. But what else would I do with that money other than live? Can I claim myself. My mom says she doesn’t need to claim me but I don’t want to get in trouble.

TurboTax Deluxe Online

xmasbaby0

Employee

Unemployment compensation is not earned income that is counted toward getting earned income credit. But it counts toward the amount of income you can receive if someone wants to claim you as a dependent. If you were NOT a full-time student in 2020 and had over $4300 of income---and unemployment counts -- then you cannot be claimed as anyone's dependent. If you were a full-time student under the age of 24 then you can be claimed as a dependent.

If you can be claimed then the rule is that on your own return you must say that you can be claimed as someone's dependent----even if they do not claim you. You will need to file a tax return and that unemployment is taxable.

Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment

You might need to get your 1099G from the state’s unemployment site.

STATES THAT TAX UNEMPLOYMENT BENEFITS

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment. You might need to get your 1099G from the state’s unemployment site.

STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

Under the CARES Act, if you are claimed as a dependent on someone else’s return you cannot receive a stimulus check, in 2020. If you were claimed as a dependent for 2019, but will not be for 2020, you will most likely get it in 2021.

In regards to the stimulus payment, when you file your 2020 income tax return, you will be asked for information about the amount of the stimulus payment you received, and if it is less than you are entitled to, you will be given a credit on your 2020 tax return.

"In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit (line 30 on the 2020 form 1040). The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount".

As others have said, you must not only not be claimed by anybody; you must also not even be eligible to be claimed by anyone. Although the vast majority of college students CAN be claimed by their parent(s), what you describe ($21K of income going to your support) probably means you don't qualify as a dependent.

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

See full rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html