Income test as Qualifying relative - Gross receipts Schedule C or Total income on 1040?

Forum|Forum|1 year ago
February 28, 2025
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I have a feeling I'm overcomplicating this but want to be sure I'm understanding correctly (my call to a tax professional just confused me more and I have found a lot of conflicting info)...

I've taken the past few years off of work due to family reasons, and have been a qualifying relative (dependent) for my fiance. In the second half of last year, I took on a small amount of side work that I'm filing on a Schedule C as a sole proprietor.

I know that, as an SP, the income flows through to personal. After going through my filing prep (TurboTax - finished but not yet submitted), the net profit/loss number from the Schedule C is what is listed as my personal "total income" on 1040.

My gross receipts from the side work are slightly over the limit of $5,050 for the gross income test as a qualifying relative. My net profit/loss and what is on my 1040 as total income is under the limit.

Which of these numbers applies to the $5,050 for the gross income test as a qualifying relative?

RobertB4444

Line 11 of your 1040 is the gross income used for the test. And that would include the net income from self-employment. So, for purposes of this test the net income is what would be used.

@cmc4ew

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cmc4ewAuthor

Thanks Robert - so to confirm my understanding, that would mean that I would count as a QR, since the net income from the Schedule C is under the $5,050 limit? Thanks again!