@bgoodreau01
All of your questions have been answered in earlier replies, but I'll go over it again
1. He will have "earned" income in excess of half the support his parents will have provided him this year, hence the kiddie tax does not apply. Is that correct? (...but his parents will have provided more than half that support).
No that's not correct. To avoid kiddie tax his earned income has to be more than half of his total support for the year, not just the support that his parents provided. Surely he will have provided some of his own support, especially now that he is working.
Furthermore, we don't know whether his earned income will actually be more than half of his support. Until someone actually adds up all of his support, such as by completing the worksheet, we are not really sure how much it is. Also, you are making an assumption about how much his earned income will be for the year. There are still five months left in the year. Unexpected things could happen that increase or decrease his earned income. It's his actual earned income for the year that matters, not how much you think it will be based on what you know in July.
2. Because 1 above is true, then he is not required to complete form 8615. What is not clear is just because he does not have to complete Form 8615, does that in itself mean the kiddie tax does not apply?
Well, as I just said, we don't know for sure that "1 above is true."
Whether kiddie tax applies, and whether he has to file Form 8615, are the same thing. Form 8615 calculates the kiddie tax.
If kiddie tax applies, he has to file Form 8615.
If kiddie tax does not apply, he does not have to file Form 8615.
If he has to file Form 8615, it's because kiddie tax applies.
If he does not have to file Form 8615, it's because kiddie tax does not apply.
3. As it relates to the kiddie tax it does not matter if his parents claim him as a dependent (they will not claim him even though he meets the definition of a qualified dependent) but I have read elsewhere it is not "if they did/will", it matters "if they could" claim him. (By the way my tax accountant said because they don't claim him, that in itself means the kiddie tax does apply. I'm not so sure he is correct and that is why I went to this TT community for help).
All of this concern about being a dependent is an unnecessary distraction. Being a dependent or not being a dependent has nothing to do with whether kiddie tax applies or whether Form 8615 is needed. Claim / not claim / meets the definition / did / will / could / don't is all irrelevant. It has nothing to do with kiddie tax.
Your accountant is wrong. Whether or not the parents claim your grandson as a dependent has nothing to do with whether kiddie tax applies. Maybe you need a new accountant, preferably someone who can read the rules for kiddie tax.
Thank you for your expertise and patience with me...
My patience is wearing thin. You have gotten the same answers multiple times, from multiple people.
