@bgoodreau01 wrote:
Since my grandson will have "earned income" more than half his expenses for the year, but did NOT PAY half his expenses (mostly due to tuition, etc his parents paid until graduation in May), does that mean he need not complete Form 8615 and therefor he is not subject to the kiddie tax?
In other words, he need not have "paid" for half his expenses, he need only have "earned" more than half his expenses.
I agree with you; the Kiddie tax does not apply.
That is the literal reading of the law (he only has to have received earned income in excess of half of his support; he doesn't need to pay his support) and I've never seen anything official that interprets it otherwise.
