Child Income (Under 24)

[aetherborn]

I am a 22-year-old who graduated from college last May. I have 3 separate W-2 forms, 3 1099-DIV forms and 1 1099-B form. My question is do I need to fill out the Child Income (Under Age 24) form? I wouldn't think I need to as my income is earned through working as opposed to unemployment or rent (I looked up what counts as unearned income for the purpose of this discussion). If I am wrong, please do not hesitate to let me know how and why or confirm that I am correct in my assumption. Thank you.

[bluedeb · Accepted solution]

You would not need to file Form 8615, Form 8615 is used to calculate taxes on certain children's unearned income. Unearned income typically refers to investment income such as interest, dividends, capital gains, and rental income.

You have earned income so you do not need to file the form.  Form 8615 must be filed for any child who meets all of the following conditions:  Was a full-time student at least age 19 and under age 24 at the end of 2021 and didn't have earned income that was more than half of the child's support.

More information from the IRS:

https://www.irs.gov/instructions/i8615

[Vanessa A]

Probably not.  If you are 22 and out of college and have W-2's that provided over half of your support, you would not need to file the Child Income form. 

If you are still a dependent, your unearned income was over $2,200 and your W-2s did not provide more than half of your support, then you would need to fill out the Child Income form.  

[Hal_Al]

You are correct, the "kiddie tax" does not apply to you and essentially for the reason stated, you (probably?) support yourself with earned income 

TurboTax (TT)  picks up the facts that you are under 24 and were a full time student for 5 months.  So it adds an interview question "was you earned income more than half your support" (or some such wording).  Go back thru the whole personal info section  and check your answer to that question. 

[Saigon-Services]

I have 17 years old child and she has a 1099-NEC for $6,600 and I supported all of his living expenses.  Does he need to file his 2021 tax returns if I claim him to my 2021 tax returns?  Or If I need to add his income to my tax returns, how can I add my 1099-NEC self-employed income to my (the parent's) tax returns?  Your advice is greatly appreciated.

[Hal_Al]

Q. Does he need to file his 2021 tax returns if I claim him to my 2021 tax returns? 

A. Yes. See details below. 

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2021 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1100.
3.          Unearned income over $350 and gross income of more than $1100
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,550 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.