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Not sure where I stand under the tax spectrum

Forum|Forum|5 years ago
May 12, 2021
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In 2020 I was 23 years old. I was then, and still now, working at a startup company where I get paid per project that I do, which has added up to less than $1,300. My company did give me a 1099 form which shows I have made under $1,300. My parents have been financially supporting me up to this point. I graduated from university and therefore am not a full time student as of December 2019.

Where does this place me in terms of doing taxes for 2020? Am I still dependent eligible for my parents for 2020? If not, what do I do then?

And since I just turned 24 as of May 2021, how will my taxes shape up for 2021 if I continue to work per project at this company?

Best answer by LenaH

Yes, you qualify to be their dependent under the Qualifying Relative rules in 2020.

Qualifying relative guidelines state that you:

aren't claimed as a dependent by someone else.
are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
aren’t filing a joint return with their spouse.
have lived with your parents the entire year.
have made less than $4,300 in 2020.
they provided more than half of your financial support.

If you continue to meet the guidelines above for 2021, then you will continue to be their dependent next tax year.

LenaHAnswer

Yes, you qualify to be their dependent under the Qualifying Relative rules in 2020.

Qualifying relative guidelines state that you:

aren't claimed as a dependent by someone else.
are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
aren’t filing a joint return with their spouse.
have lived with your parents the entire year.
have made less than $4,300 in 2020.
they provided more than half of your financial support.