@bgoodreau01 @NCperson
Whether the child CAN BE claimed or IS claimed as a dependent has nothing to do with whether he is subject to kiddie tax. Here are the conditions for kiddie tax to apply. Note that these rules do not mention whether or not the child is a dependent.
- The child has unearned income of more than $2,700 (for 2025).
- The child is required to file a tax return.
- The child is not filing a joint tax return.
- At least one of the child's parents was alive at the end of 2025.
- Any one of the following three conditions is true.
(1) The child was under 18 at the end of 2025.
(2) The child was 18 at the end of 2025 and his earned income (from working) is not more than half of his total support for the year.
(3) The child was under 24 at the end of 2025, he was a full-time student, and his earned income (from working) is not more than half of his total support for the year.
For more details see the IRS Instructions for Form 8615. Note that, after listing the conditions as stated above, the instructions say "These rules apply whether or not the child is a dependent."
UPDATE 7/27/25: Corrected link to IRS Instructions for Form 8615.
