My daughter is 20, a college student and our dependent. She had $2000 in earned income and $6000 in an IRA inherited from her grandmother. Does she need to file frm 8615

[DanielV01]

It depends, but probably.  If the IRA disbursement is reported as a taxable amount on Form 1099-R (which is likely), then she will have more than $2100 of unearned income, which does require Form  8615 to be filed.  Here is the IRS website that gives further instructions for who must file:  https://www.irs.gov/instructions/i8615/ch01.html#d0e38

[minetrac]

TT is saying she doesn't need to complete, as her 1098-T checked her as at least half-time student.  Does this seem correct?

[DanielV01]

Did you check that she can be or will be claimed as a dependent on her return?

[confused12]

no she is dependent on our return, but the not-full-time student status was the reason.

[DanielV01]

I'm sorry.  I didn't ask the question correctly.  That check box I mention comes up in the Personal Info Tab.  When she is doing her return, she will select that someone else can or will claim her (program's wording).  If she doesn't, the 8615 is not activated.  If you did this, filled in all of the information, and TurboTax says she doesn't need the form, it is because it has calculated everything so that it is not needed.  

To cover all bases, however, a 1099-R would report the money she received from her grandmother's IRA.  The 1098-T is her education billing/expenses.  Did she receive a 1099-R that reported her grandmother's IRA disbursement?

[confused12]

Thank you for your help! Yes, the dependent box is checked and the form was activated, but then it said it wasn't needed (I assume due to the college student answer). She also received a 1099-R from the inherited IRA for $6000, which caused her to owe taxes :-(.  She also received a 1099-Q from a 529 and a 1098-T from school. Since she was a dependent, the school piece didn't do anything, and we had too much income to use it. Thanks again!