Question

Claiming a full time student that owns a LLC

Forum|Forum|1 year ago
February 11, 2025
1 reply
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My son started a LLC this year and he made $1900 this year and is 18 and a full time college student and I pay over half of his expenses. Can I claim him as a dependent on my taxes or does he need to do his own with the business?

SusanY1

You should claim your son as a dependent since he is a full-time student under the age of 24.

However, he will also need to file his own tax return to report his self-employment income. When he prepares that return be sure to let him know that he needs to indicate that he is a dependent on another person's tax return when he does, so that you will both be able to successfully e-file.

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T

TF1999Author

He is worried he won’t get the deduction. Will he still have to pay in with only getting a 1099 for $1900? Will he still be required to pay Social Security and Medicare taxes?

VolvoGirl

Employee

What deduction? He will still get the Standard Deduction.

And he will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.