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.
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?
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?
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.