Form 8615

[specieplipa]

Hi,

I'm trying to figure out whether I need to fill out Form 8615 - i.e., am I subject to the kiddie tax, as user rjs explains here https://ttlc.intuit.com/community/taxes/discussion/if-turbotax-is-asking-for-your-parents-income-it-...

I am 20, and my earned income is less than my unearned income for 2021. However, I have been paying my living expenses with a college trust fund that is in my name- so I think it's not technically the support of my parents, although they were the ones who originally set it up. But the amount of money that I have used from that account for rent this year is definitely more than my earned income. 

Should I fill out form 8615? When TurboTax asks me "did you support yourself in 2021? (supporting yourself means paying for more than half of your living expenses with earned income), "do I say no? 

[Bsch4477]

Since your trust fund income is not earned income you would answer “no”. 

[Hal_Al]

What exactly is your "college trust fund"? Is an actual trust or do you have a Qualified tuition plan/529 plan or Educational Savings Account (ESA). A QTP?529?ESA is still parental support. A real trust is not. 

Support and kiddie tax income are not necessarily the same thing. Distributing principal from an actual  trust counts as support. But distributed principal is not reported as income on your tax return. If the trust had income (interest, dividends, capital gains), the trustee decides, based on the terms of the trust whether the trust pays tax on the income or the income is distributed to the beneficiary (you) to be reported on his return. In that case you receive a form K-1 reporting your taxable income from the trust. That is unearned income and will generate form 8615.

Q. Should I fill out form 8615?

A.  TurboTax will deiced that based on your input.

Q. When TurboTax asks me "did you support yourself in 2021 "do I say no?

A. It depends on how did you answer the question can someone else claim you on their tax return.