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Mgconslts
Returning Member

Kiddie Tax question

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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4 Replies

Kiddie Tax question

An inheritance is not taxed. Do you mean that more than $2,200 was made from an investment of the inheritance?

Mgconslts
Returning Member

Kiddie Tax question

The inheritance was a taxable annuity.  

Kiddie Tax question

From your post the student fulfills the criteria for the Kiddie tax. 

Kiddie Tax question


@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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