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I have a question involving the kiddie tax for a friend. They do their taxes in TurboTax. In the form 8615 worksheet, it asks was the child either 18 years old or a full-time student age 19 to 23 with unearned income more than $2,200 and their earned income did not exceed ½ of their support? Can they answer no which would save a lot? The child was in this age range and a full-time student; their unearned income was more than $2,200 from an inheritance of a taxable annuity; their earned income does not exceed ½ of their support. The child is listed as a dependent on their parents’ return.
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An inheritance is not taxed. Do you mean that more than $2,200 was made from an investment of the inheritance?
The inheritance was a taxable annuity.
From your post the student fulfills the criteria for the Kiddie tax.
@Mgconslts wrote:it asks was the child either 18 years old or a full-time student age 19 to 23 with unearned income more than $2,200 and their earned income did not exceed ½ of their support?
Can they answer no which would save a lot? The child was in this age range and a full-time student; their unearned income was more than $2,200 from an inheritance of a taxable annuity; their earned income does not exceed ½ of their support.
Are you asking if they can lie on their tax return, and therefore commit tax fraud?
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