Full Time Student Status

[LB42]

I have 2 college attending daughters with passive income over $6K.  One also has a W-2.  They are required to pay taxes at my rate via Form 8615.  Can I not declare them (it's only worth $500 each to do so) and say they are not students?  I'm looking for avoidance, not fraud.  But MUST I declare they are students?  If they are not, given they are over 18, they would pay at their own rate...not mine.

Correct?

Love some advice here.

[KrisD15]

Unless they supply more than half their own support, they would not be allowed to file as a non-dependent taxpayer. 

Given that, it doesn't matter if you don't claim them, they would still be liable for the Kiddie tax.

Are there any education credits available for you? 

[LB42]

Thank you.  Not the answer I was hoping for, but certainly what I expected.  I don't believe I have any credits here.  They are going to super cheap schools and I make a good salary.  Any suggestions of places to look?

[Hal_Al]

Q. Can I not declare them and say they are not students? 

A. No.  I'm looking for avoidance, not fraud.

Q.   But MUST I declare they are students? 

A. Yes. Even if you do not claim them as dependents, they are still subject to the "kiddie tax' (form 8615). 

Q.  It's only worth $500 each to do so?

A. There's also a (up to) $2500 tuition credit, unless your income is too high (>$90K. $180K married filing jointly)

There is no way, other than tax fraud, to avoid the kiddie tax.