in Education
You'll need to sign in or create an account to connect with an expert.
Although it is reported on the same line on the tax form as wages, it is not wages, and is not "earned" income. It is "unearned income" for almost every purpose.
However, for purposes of the Standard Deduction, it is considered "earned" and the full $12,000 Standard Deduction can be applied against it.
For anything else (such as the Kiddie Tax, eligibility as compensation for IRAs, etc,), it is still "unearned" income.
Although it is reported on the same line on the tax form as wages, it is not wages, and is not "earned" income. It is "unearned income" for almost every purpose.
However, for purposes of the Standard Deduction, it is considered "earned" and the full $12,000 Standard Deduction can be applied against it.
For anything else (such as the Kiddie Tax, eligibility as compensation for IRAs, etc,), it is still "unearned" income.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Regn4
New Member
in Education
broncos4ever
Returning Member
in Education
SCGirlFromGA
Level 2
JonP1969
New Member
Jmalibu
Level 1
in Education