Form 8615 kiddie tax?

[gradstudent23]

I am a full-time graduate student, age 23, living with my parents. For the first half of the year, my income came from a W-2 stipend that counts as earned income. Halfway through the year, I started receiving a fellowship that is unearned income. 

According to IRS instructions for Form 8615 (https://www.irs.gov/pub/irs-pdf/i8615.pdf), you only have to pay the kiddie tax  if you don't have  earned income equal to more than half of your support. My question is this: because of my stipend from the first half of the year, I do have earned income equal to more than half of my support, but I'm not actually providing more than half of my support. So do I have to file a form 8615 and pay the kiddie tax? If I read the instructions literally, it sounds like I don't have to, but I'm not sure. Also if it's relevant, tuition and fees are waived for my graduate program, so I have no cost of education to factor into my support. 

The tax difference is significant (about an extra $5,500 for the kiddie tax). But its not clear. Can I be a dependent since I'm not providing more than half of my support, but also not have to file form 8615 and pay this extra tax because I do have earned income equal to more than half of my support?

I appreciate any clarification anyone can give...

[Vanessa A]

Yes, you can be a dependent  and not have to file form 8615 because the criteria for being a dependent is not the same as the criteria form 8615. 

You are reading it correctly.  If you have earned income that equals more than half of your support, you do not have to file the kitty tax form. Whether or not you paid for more than half of your support is not one of the listed criteria, only whether or not you had income in that amount. 

[gradstudent23]

Thanks for your reply! Part of the reason I was originally confused is that the TurboTax software doesn't seem to allow a distinction between this. Because I'm a dependent (not paying for my support), the software automatically seems to try to make me file form 8615. It doesn't seem to allow me the option to clarify that the earned income that I have does equal more than half of my support. I couldn't find a way to specify any parameters that would let me do my taxes without filing form 8615. Do you know if there's a way to get around this, while still being accurate about the fact that I can be claimed as a dependent and didn't actually provide more than half of my support?

[AmyC]

You have marked that you can be claimed by someone. Assuming parent(s)- they provide over half of your support, all is well on that front.

The 8615 is filed by parents to claim unearned income if the child is not filing their own return. Unearned income between $1,100 and $12,400 may be reported on the parents return. You have earned income. Since you are filing your own return, nobody needs to file the 8615.

[gradstudent23]

Thanks Amy! So do you have any idea how to get around filing the form 8615 in the turbotax software? As soon as I mark down that I am a dependent and I'm not providing more than half of my support, turbotax automatically tries to make me file the 8615, and I can't find a way to avoid that in the software.

[AmyC]

In the personal section, you marked that someone can and will claim you. Your filing status is single. The dependent section of your return is blank since you have no kids on your return. You inputted your w2 income. 

The 8615 goes with dependent kids. You should not have any on your return so no 8615. Something in your personal section must be wrong. Go back through the personal section and double check your entries. You should have:

Personal Info Summary:

Should have your information

Claimed as dependent by someone else

Status Single

Address