Child's Income (Under Age 24)

Forum|Forum|3 months ago
March 2, 2026
2 replies
8 views

I finished my undergrad in 2025 and am doing paid full time internship and then heading back to med school in few months. Under the "Less Common Income" section, there is a subsection on "Child's Income (Under Age 24)" which asks lot of questions like if my parents are deceased or married and what is their income, etc. When I fill this subsection my tax liability goes up significantly. Am I supposed to fill this subsection? My parents are claiming me as their dependent but I am filing my own tax return.

taxdramaAuthor

Level 4

The paid internship was with NIH, which issued a 1099-G for about $18K and showed it as Taxable Grants. Sharing to see if this is the reason I am being forced by TT to work on Form 8615, Tax for Certain Children Who Have Unearned Income. My other unearned income is about $150 in bank interest and $19 in dividends. I am also a self-employed tutor from where I earned about $5K in 2025.

MelindaS1

Level 6

The “Child’s Income (Under Age 24)” section in TurboTax corresponds to the IRS kiddie tax rules (Form 8615).This can apply either when a parent elects to report a child’s income on their own return (Form 8814), or when a dependent child files their own return and must complete (Form 8615) due to unearned income.If you can be claimed as a dependent and have more than the IRS threshold of unearned income, TurboTax may require this section because you are subject to the kiddie tax.

[Edited 03/08/26 | 7:05am PST]

See also: IRS - Instructions for Form 1099-G (03/2024) (highlighted)

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MelindaS1

Level 6

TurboTax is directing you to the “Child’s Income” section because you meet the IRS criteria for Form 8615 (kiddie tax).The kiddie tax applies if:You can be claimed as a dependent,You are under 24 and a full-time student (or under 18),You have more than the threshold amount of unearned income,And you do not provide more than half of your own support.In that case, you must complete Form 8615 on your own return, and your unearned income may be taxed at your parents’ rate.

[Edited 03/08/26 | 7:07am PST]

I agree that this is a taxable scholarship that qualifies as unearned income, not subject to self-employment tax. You definitely want Form 8615 attached to your return. These are the requirements:

Who Must File

Form 8615 must be filed for any child who meets all of the following conditions.

1. The child had more than $2,700 of unearned income.

2. The child is required to file a tax return.

3. The child either:

a. Was under age 18 at the end of 2025,

b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or

c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.)

4. At least one of the child's parents was alive at the end of 2025.

5. The child doesn’t file a joint return for 2025.

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taxdramaAuthor

Level 4

I am using desktop Deluxe TT. From the beginning itself, I have put the 1099-G in "1099-MISC and Other Common Income" and have now entered the parents' income info in the "Less Common Income/ Child's Income (Under Age 24)" section. This way TT is not erroring out and is allowing me to complete the Federal tax returns and prompting me to work on the state return. I am hoping this is the best path forward (even though I owe substantial kiddie tax now).

Hal_Al

Level 15

I suggest you try entering the income as taxable scholarship and compare the results. Since you have desktop software, you can made a practice return without changing what you've already done (with desktop, you can prepare an unlimited number of returns, but you can only e-file five).

With your return open, click on file (upper left corner), then "save as". Give it a new name.