Tax Year Prior to 2020: How do I get rid of my form 8615?

[beardseb]

I've read all these posts and it doesn't appear anyone ever actually accomplished the goal of fixing an earlier errant identification that form 8615 is needed.  I've attempted to delete the form, and it stays, and I have answered "no" to the question if it applies to me (my daughter actually), and it keeps thinking it does.  Did anyone fix it, or did you just move on to H&R Block or file a paper return?

[JamesG1]

The form is being deleted and is immediately re-generated because of the answers to TurboTax's questions about this form.

This TurboTax Help explains who must file IRS form 8615:  Tax for Certain Children Who Have Unearned Income.

For 2020, a child must file Form 8615 if all of the following conditions apply: 

• The child has more than $2,200 in unearned income
• The child is required to file a tax return
• The child does not file a joint tax return with a spouse
• At least one of the child's parents is alive
• The child is within certain age limits 

For tax purposes, the child's "age" is the age on December 31. The child must file the form if any of these conditions apply: 

• The child is under 18 at the end of the year
• The child is 18 years old and does not have earned income that is more than half of the child's support for the year, or
• The child was a full-time student age 19-23 and does not have earned income that is more than half of the child's support. 

In addition, the IRS defines unearned income as: 

• Interest, dividend, or investment income,
• Retirement or Social Security income,
• Alimony or child support,
• Unemployment or worker's compensation,
• Gifts, prizes, awards, or winnings,
• Inheritances,
• Income received while incarcerated, even if it involves active work.

[Raingame15]

It eventually cleared. I think I had to somehow message TurboTax and one random day I checked and it let me move on. 

[TimInMass]

Check the form "Personal Information Worksheet for the taxpayer" to see if it has the box in Part II line #4 check box "NO" selected, change that to "YES" (if appropriate) and then you can follow the process to delete the form 8615 as mentioned multiple times in this thread.

Tim

[TobyMeister]

Hi JamesG1 and TimInMass,

I'm curious about your discussion regarding Form 8615.  I used TurboTax Premier 2020, desktop/CD version, to prepare tax returns for my wife and I (both retired with no children or dependents).  I prepared our tax return(s) two ways:  Married Filing Jointly and Married Filing Separately to see what the differences would be.

Here's where it gets interesting.  Our Married Filing Separately returns, each contain a Form 8615 Schedule D Tax Worksheet (Child's Line 15 Schedule D Tax Calculation, Family's Aggregate Line 9 Schedule D Tax Calculation).  There is no Form 8615 for filing, because we don't need it, but its worksheet is present in both MFS returns.  In our Married Filing Joint return, there is no reference whatsoever to Form 8615 or its Schedule D Tax Worksheet.

Another oddity - there is a Student Information Worksheet in both Married Filing Separately returns, for the appropriate taxpayer.  My wife has a student information worksheet in her return (all boxes are No or NA), and I have a student worksheet in my return (all boxes are No or NA).

I reviewed our personal information in the MFS returns and it looks correct:  retired, no children, no dependents, we're not students and we can't be claimed as dependents on another return.

So, I'm curious.  Do you know why our MFS returns contain the Form 8615 Worksheet and the Student Info Worksheet, but our MFJ return does not include either?  I thought this was weird and it piqued my curiosity.

Thanks.

[SamS1]

Married filing separately has some distinct disadvantages. That may be why you are seeing some different forms.  When married filing separately:

• You wont be able to claim any educational benefits.  This may explain the student information worksheet.  While it did not pertain to you, universally to another taxpayer using TurboTax, it could.
• If there are children with unearned income, the parent with the higher taxable income would be used for the 8615 calculation.  Again, not applicable to you but could to another taxpayer
• Additionally, there are no tax credits for Child and dependent care credit or Adoption credit if you are married filing separately.

This probably is the reason you are seeing the additional forms when married filing separately.   Since they are all zeros or N/A, I would ignore them.

I would like to bring to your attention the TurboTax Taxcaster that will let you see the options of married jointly or married separately without completing two tax returns.  Click here to see TaxCaster.

[Jessalynn1234]

I am having the same issue! I meet a lot of the requirements BUT my earned income should meet half of my support. I made $13k+. Who determines if it did or not? Where can I answer that question?

[DianeW777]

You can make the determination as to whether you provided more than half of your own support which would make you independent.  Keep in mind that who claims a dependent is not an optional, rather who is the qualifying taxpayer eligible to list a dependent.  

The IRS Publication 501, page 15 (Worksheet for Determining Support) will show you what you should include for your support. If any of your money was placed in a savings account (and not withdrawn) those funds would not be considered as used for your support.  Also, you should be looking at your spendable money, so after the tax withholdings, use your net pay.

@Jessalynn1234

[Jessalynn1234]

Thank you for replying. 
I am not claimed as a dependent on my parent’s taxes. 
I am having trouble finding the place to answer that I DID make enough earned income that was more than half of my support. 

[DianeW777]

You don't actually answer that question, but in your Personal Information (My Info), make sure you selected 'No' when asked 'Someone else can claim me as a dependent on their tax return'.  If you said 'Yes', then correct your answer.

It shouldn't be necessary to delete Form 8615, however here are the steps to do that.

• How do I view and delete forms in TurboTax Online?
• How do I delete forms in TurboTax CD/Download?

[clobber88]

This is a really good discussion, but I have a question. 

The so-called "support" test for a student to be considered independent (which is often now favorable) is, "did the person provide more than half of his or her own support?" The IRS worksheet here walks you through the support test. Of critical importance is that the student actually has to spend their own money, either from income, loans, or savings. For example, a student might not even have any earned income. If their yearly support was $40k and they withdrew $20k from savings, that would meet the criteria. It makes sense, they spent their own money on their support.

However, the corresponding criteria for kiddie tax from the form 8615 instructions is, "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." If the student does have earned income that was more than half the support then they are not subject to the kiddie tax - however they don't have to spend that money! Just have the earned income.

Take the case of a student who's support is $40k and the parents pay 100% of that. However, the student does have a job with $20k earned income and another $20k in unearned income (or taxable scholarship) that they put into a savings account and don't spend on support. Wouldn't this student still be considered a dependent because the parents paid all of the support, but still not owe any kiddie tax on the unearned income - because they did have 50% earned income.

I believe that I have this case in TT, but I can not make TT get rid of the 8615. I agree with the earlier discussion that 8615 is probably being generated because of answers in the "PERSONAL INFO" section that put the student as a dependent.  But I don't see anywhere later on to indicate that the student had earned income that was more than 50% of support. Again - that is different than the answer about providing support. 

I'm tempted to override the 8615 check box at the top of the form. However, I would prefer to answer the correctly in the step-by-step. Is there a way to do that?

[RobertB4444]

If the student qualifies as your dependent - that is under age 24, enrolled as a fulltime student at least one semester during the year and the student themselves did not provide more than 50% of their own support - then it doesn't matter how much money they made. They're your dependent.

This is a good TurboTax answer with more details.

[clobber88]

While that is true, it does not mean that they will owe Kiddie Tax (8615) on their unearned income. Because the test for 8615 is different that just being a dependent.  There is actually a good but old Kitces article on the topic. I just can't figure out how to remove the 8615 from TT without going into the form and overriding the X box.

Exerpt from the Kitces article: "However, it’s important to note that the “support” test itself for the kiddie tax is not the same as the support test for determining dependent status; for the kiddie tax, earned income must exceed at least one half of the child’s support needs (regardless of how it is spent), while dependent status is determined based on whether the child actually paid/provided for at least one-half of his/her own support (regardless of whether funded from earned or unearned income). Thus, a dependent child could still avoid the kiddie tax (but having earned income in excess of one-half of support needs, but not actually spending money on his/her own support), while a child could avoid being a dependent but still face the kiddie tax (if the child provided more than one-half of his/her own support, but had little or no earned income)."

[ColeenD3]

The key here is the fact that if the child put the money into a savings account, it was not used for support. The Kitces article also states, "(regardless of how it is spent)," That part is true. However, it must actually be spent, not put into a savings account.

"Take the case of a student who's support is $40k and the parents pay 100% of that. However, the student does have a job with $20k earned income and another $20k in unearned income (or taxable scholarship) that they put into a savings account and don't spend on support."

@clobber88

[clobber88]

I agree if you are calculating support for determining dependency. It is evident in the support test worksheet that the money must be spent.

But still - the corresponding test for Kiddie Tax is only as described in the instructions for 8615 . There it lists the criteria below for who must file. Part 3c does not make any reference (nor can I find any other reference) that the earned income must be spent. Only that you have to have 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:

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

   2. 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

   3. 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.

   (Earned income is defined later. Support is defined below.)

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.