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Level 3
March 27, 2023

KIDDIE TAX

  • March 27, 2023
  • 1 reply
  • 7 views

IS A 20 YEAR OLD COLLEGE STUDENT WHO RECEIVES AN IRA DISTRIBUTION FROM A DECEASED UNCLE SUBJECT TO THE KIDDIE TAX?

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    1 reply

    Level 6
    March 27, 2023

    IRA/Pension income is considered unearned income, so if the student is claimed as a dependent of their parents there may be Kiddie tax to be reported.  

    Level 15
    March 27, 2023

    @PamC wrote:

    so if the student is claimed as a dependent of their parents there may be Kiddie tax to be reported.  


    The 'kid' may be subject to Kiddie Tax even if parents are not able to claim him as a dependent.