TT Saying I Need Form 8615

[aj115]

My parents could claim me as a dependent on their tax return but aren’t going to. I am a 21 year old student who graduated in December. 

I shouldn’t need to fill out Form 8615 as my earned income was more than half of my support.

I didn’t provide half of my support, hence the dependent eligibility, but I did “have earned income that was

more than half of the child's (my) support.”

How do I tell TT that I don’t need this form?

[Bsch4477]

Deleted. 

[aj115]

My earned income is more than half of my support though, so it seems like it should not apply. 

[Bsch4477]

The Kiddie tax applies to unearned income. After the screen where you say someone can but won’t claim you it asks if you supported yourself. You answer No my earned income provided less than half  my support   In my test return that form didn’t come up. 

[aj115]

It does not and as far as I can tell there’s no way to put in how much “support” one needs. Also, it didn’t last year and I filed 8615 so now have to make an amendment. We’ll see about their maximum refund guarantee….

[Bsch4477]

I think the issue is this. If you have earned income greater than half of your support the IRS assumes that the income was in fact used for your support. In that case you can’t be a dependent. So you are either a dependent and subject to Kiddie tax or you can’t be claimed as a dependent and are not subject to that tax. 

There is an IRS worksheet to determine support. 

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

[Hal_Al]

I agree with @Bsch4477 , you can't claim that your earned income is more than half your support, so you're not subject to the kiddie tax and at the same time say you didn't spend your earned income on support, therefore you can be claimed as a dependent.  

The wording in the TT interview is: "Yes, I provided over half my support with earned income" or "No, my earned income provided less than half my support?

[aj115]

Other sources on the web agree that it is a dollar for dollar comparison about “ability to provide support” not “actually provided support”. And I’m unclear why the IRS would use this language if that wasn’t the case. 

[Hal_Al]

Please provide links to your sources.  

The wording at the IRS web site is a little ambiguous "didn't have earned income that was more than half of the child's support"

The bottom line appears to be that TT isn't going to let you do it.  So, if you're confident, you'll have to use a workaround. 

[Bsch4477]

Since your earned income is greater than half of your support why don’t you say that you can’t be claimed as a dependent?  Since your parents aren’t claiming you anyway they lose nothing and you avoid the whole Kiddie tax issue. 

[aj115]

That wording seems very clear. I had “earned income” that was more than “half of my support”. 

[aj115]

I don’t say I can’t be claimed as a dependent because that’s fraud… I can be claimed as a dependent and there are a bunch of tax breaks for people who can’t be claimed as a dependent (ex HSA contribution)

[Hal_Al]

The workaround is to not check the full time student box.  Lying to TurboTax to get it to do what you want does not constitute lying to the IRS.  Nothing about your student status is indicated on the IRS forms  for your return.