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samtax1
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Why would my 1099-INT total interest of $1403 change my Federal refund? Income from internship was $5049. I am still below the $12000 deduction right?

 
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Why would my 1099-INT total interest of $1403 change my Federal refund? Income from internship was $5049. I am still below the $12000 deduction right?

If you are under 24 and a student, it probably changed it because it was taxed using the kiddie tax rules. If you are subject to the kiddie tax, then this income will be taxed even if you are under the $12,000 deduction.


Tax for Certain Children Who Have Unearned Income

Use Form 8615.pdfTax for Certain Children Who Have Unearned Income to figure your tax on unearned income over $2,100 if you're under age 18, and in certain situations if you're older (see below). Attach Form 8615 to your tax return if all of the following conditions are met.

  1. Your unearned income was more than $2,100.
  2. You meet one of the following age requirements:
    • a. You were under age 18 at the end of the tax year,
    • b. You were age 18 at the end of the tax year and you didn't have earned income that was more than half of your support, or
    • c. You were a full-time student at least age 19 and under age 24 at the end of the tax year and you didn't have earned income that was more than half of your support.
  3. At least one of your parents was alive at the end of the tax year.
  4. You're required to file a tax return for the tax year.
  5. You don't file a joint return for the tax year.

https://www.irs.gov/taxtopics/tc553

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