I am a 22 year old and I was a full time college student from January to May 2021. My parents are not claiming me on their tax return. Do I need the form 8615?

[wilsonzhang6]

I checked the help section and it said I won't need it. I deleted the form but Turbotax keeps adding it back and asking for my parent's name and social security. Also, I noticed that it is increasing the wages, salaries, tips, etc. number in Box 1 on my 1040 by a couple thousand dollars and I don't want that.

[MayaD]

If you are required to file Form 8615, you can't delete it.

Form 8615 must be filed for any child who meets all of the following conditions.

1. The child had more than $2,200 of unearned income.

2. The child is required to file a tax return.

3. The child either:

     a. Was under age 18 at the end of 2021,

     b. Was age 18 at the end of 2021 and didn’t have earned income that was more than half of the child's support,           or

     c. 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. 

4. At least one of the child's parents was alive at the end of 2021.

5. The child doesn’t file a joint return for 2021. For these rules, the term “child” includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent. These rules don’t apply if neither of the child’s parents were living at the end of the year.

One of the interview questions is triggering form 8615. Did you receive any scholarships/grants? 

[wilsonzhang6]

Hi Maya,
I was in college from Jan to May 2021 and I did receive grants for it. So I'm assuming the grants I got counted towards the $2.2k of unearned income? Thanks

[ErnieS0]

Yes. Grants are considered unearned income.

For Form 8615, “unearned income” includes all taxable income other than earned income. Unearned income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust.

See Form 8615 Instructions

[wilsonzhang6]

Thanks, do I have to report the 1098T? Box 5 is greater than box 1 in the 1098T. I am seeing conflicting answers online

[ErnieS0 · Accepted solution]

It depends. If you are filing a tax return you can't omit a Form 1098-T if it produces taxable income.

A taxable scholarship is unearned income so the filing thresholds are lower. You will have to file a return if:

• You had only unearned income (interest, dividends, capital gains) of more than $1,100;
• You had only earned income (wages, salaries, tips, fees) of more than $12,550; or
• You were self-employed with $400 or more income.

In cases of mixed income (earned and unearned), file a return if:

• Unearned income was more than $350, and gross income of more than $1,100, or
• Unearned income was $350 or less, and gross income of more than $12,550

For further discussion see Tax Champ @Carl's answer at If a 1098-T form only has a scholarship/grant on it, do I need to file it?