Q. Is the Kiddie tax on the child's return or parent?
A. In this situation (the child has taxable scholarship income), it goes on the child's return, using form 8615*.
Because scholarship income is earned income, for purposes of the dependent's standard deduction, the kiddie tax will not kick in until he has more than $15,100 of income ($13850 +1250) for 2023.
*If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.
