Do I need to file Kiddie Tax Form 8615 for a year where I’m not required to file federal 1040 per IRS requirements, but must file a 1040 anyway due to a lower state tax threshold?

[Quick_Drive7508]

Hi,

For a previous tax year, I did not meet the IRS filing threshold for a single dependent. It turns out I did exceed the state threshold for NC and in order to file in NC, I need to complete a 1040.

I was a college student with taxable scholarships (ONLY form of unearned income) in excess of the unearned income limit for dependent minors, however, since I didn’t need to file 1040 (total earned income, including taxable scholarship < single dependent filer standard deduction), I didn’t meet the 1040 IRS filing requirement, and thus did not need to fill out the form.

Now that I’m completing the 1040 anyway so that I can do the state return, I’m trying to confirm whether or not I need to complete the Kiddie tax Form 8615? Logically, my taxable income is 0, which is evident on the 1040 so the form wouldn’t add any value. The tax software I’m using will not take me through the form, but gives me a warning when trying to progress to the next section that says I’m required to complete the form. I called the IRS and they said they don’t have anyone who can answer questions about the form I called back 3 times and was put on hold until the phone disconnected.

@Carl, @macuser_22, @Hal_Al your answers on other posts have been extremely informative and I’m grateful for the information you provide. Could you possibly assist in helping me to clarify whether or not this form is required for me?

[Hal_Al]

Q. Do I need to file Kiddie Tax Form 8615 for a year where I’m not required to file federal 1040 per IRS requirements, but must file a 1040 anyway due to a lower state tax threshold?

A. Yes. 

Most tax software (including TurboTax) will produce form 8615 but will stop at line 5, which says:

"5. Enter the smaller of line 3 or line 4. If zero, stop; do not complete the rest of this form but do attach it to the child’s return"

[Quick_Drive7508]

Gotcha, appreciate the information! So I will include it.

I was expecting the software to stop where the form says stop but it just does not generate the form at all once I answer a few questions. I’m using OLT (probably not the best interface), and have reached out to customer service regarding the issue.

If unable to generate the form through OLT for some reason, I was planning to just use a fillable form from the IRS website for the applicable year, fill out the form myself, print, and include it in the mail with the 1040 generated by OLT. Would there be any issue in doing it this way? Apologies if this is a very simple/obvious answer, I typically e-file and have never had a similar issue.