Some students receive a form 1098-T that has box 5 amounts that exceed box 1 amounts. This shows as unearned income.
Your parent's social security number is entered to complete the form 8615 for income that may be taxed at your parents' rate.
Form 8615 must be filed for any child who meets all of the following conditions.
1. The child had more than $2,500 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 2023,
b. Was age 18 at the end of 2023 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 2023 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.)
4. At least one of the child's parents was alive at the end of 2023.
5. The child doesn’t file a joint return for 2023.
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.
When entering your 1098-T information be sure to include any expenses not included in box 1 by your school, but which you paid. For example, required books. This will help reduce your unearned income.
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