Kiddie Tax question

Forum|Forum|4 years ago
February 25, 2022
4 replies
30 views

I have a question involving the kiddie tax for a friend. They do their taxes in TurboTax. In the form 8615 worksheet, it asks was the child either 18 years old or a full-time student age 19 to 23 with unearned income more than $2,200 and their earned income did not exceed ½ of their support? Can they answer no which would save a lot? The child was in this age range and a full-time student; their unearned income was more than $2,200 from an inheritance of a taxable annuity; their earned income does not exceed ½ of their support. The child is listed as a dependent on their parents’ return.

Bsch4477

Level 15

An inheritance is not taxed. Do you mean that more than $2,200 was made from an investment of the inheritance?

MgconsltsAuthor

Level 2

The inheritance was a taxable annuity.

Bsch4477

Level 15

From your post the student fulfills the criteria for the Kiddie tax.

AmeliesUncle

Level 15

@Mgconslts wrote:
it asks was the child either 18 years old or a full-time student age 19 to 23 with unearned income more than $2,200 and their earned income did not exceed ½ of their support?

Can they answer no which would save a lot? The child was in this age range and a full-time student; their unearned income was more than $2,200 from an inheritance of a taxable annuity; their earned income does not exceed ½ of their support.

Are you asking if they can lie on their tax return, and therefore commit tax fraud?