topic Re: Full Time Student Status in Education

Full Time Student Status

LB42 — Sat, 29 Mar 2025 02:45:17 GMT

I have 2 college attending daughters with passive income over $6K. One also has a W-2. They are required to pay taxes at my rate via Form 8615. Can I not declare them (it's only worth $500 each to do so) and say they are not students? I'm looking for avoidance, not fraud. But MUST I declare they are students? If they are not, given they are over 18, they would pay at their own rate...not mine.

Correct?

Love some advice here.

Re: Full Time Student Status

KrisD15 — Sat, 29 Mar 2025 02:52:27 GMT

Unless they supply more than half their own support, they would not be allowed to file as a non-dependent taxpayer.

Given that, it doesn't matter if you don't claim them, they would still be liable for the Kiddie tax.

Are there any education credits available for you?

Re: Full Time Student Status

LB42 — Sat, 29 Mar 2025 03:06:30 GMT

Thank you. Not the answer I was hoping for, but certainly what I expected. I don't believe I have any credits here. They are going to super cheap schools and I make a good salary. Any suggestions of places to look?

Re: Full Time Student Status

Hal_Al — Sat, 29 Mar 2025 12:28:07 GMT

Q. Can I not declare them and say they are not students?

A. No. I'm looking for avoidance, not fraud.

Q. But MUST I declare they are students?

A. Yes. Even if you do not claim them as dependents, they are still subject to the "kiddie tax' (form 8615).

Q. It's only worth $500 each to do so?

A. There's also a (up to) $2500 tuition credit, unless your income is too high (>$90K. $180K married filing jointly)

There is no way, other than tax fraud, to avoid the kiddie tax.