@NCperson wrote:
The IRS publication states "support costs"; where does it state "expenses"?
The support cost is determined on lines 6-19 of the worksheet (page 16 of Pub 501), so if his earned income is more than 1/2 of Line 19, then no "kiddie tax" implications . How would any of us know whether that is true?
I agree that it is "support", not "expenses". Thank you for that clarification.
As you said, the taxpayer need to know the amount of support, and using that worksheet in Publication 501 is a great way to do that.
Once a person knows the amount of support, then it can be contrasted with the amount of earned income. But the point that the OP and I were making is that the child does NOT need to pay any support with that earned income. The Kiddie Tax is merely comparing the amount of support with the amount of earned income, regardless of who actually pays the support.
