Q. Is it true that If a student is not eligible for the American Opportunity Tax Credit, he is not subject to Kiddie Tax although he may be a full time student?
A. No, that is not accurate, as the other answer indicates. Note rule 3.c. It's being a full time student (under 24) that makes him subject to the kiddie tax. A part time student (over 18) would not be subject to the kiddie tax.
There are rules for the AOTC; and then there are additional rules for a full time student, under age 24, qualifying for the refundable portion of the AOTC, on his own return. Those rules are near identical to the rules for the kiddie tax. That may be the source of confusion.
