Level 4

Kiddie Tax Qualifications

Forum|Forum|4 years ago
February 19, 2022
2 replies
11 views

I have a client that is 23 with unearned income and no earned income. She made 30K earned the prior year, 2020, and filed/claimed herself (no kiddie tax).

For 2021, she did not have earned income, did not live at home, had 10K of unearned income, AND did not qualify as a full time student for more than 5 months. The way I read it, being part time is enough to disqualify the kiddie tax, correct?

She took the following hours: Fall 10 hrs, Spring 14 hrs, Summer 4 hrs. Spring was the only full time semester which is 4 months.

In addition, you could argue she paid half of her support, although, the math gets fuzzy. Attends a state school under scholarship (no tuition). Only expenses are school fees and room/board.

Thanks in advance!

This topic has been closed for replies.

T

TaxGuyBill

Level 15

@GeorgiaRe Tired wrote:

Spring was the only full time semester which is 4 months.

So it completely ended by April 30th? If any of the semester went into May, that is 5 months which makes her a full-time student.

And she did not pay over 1/2 of her support with earned income.

G

GeorgiaRe TiredAuthor

Level 4

Spring Semester: First day of class 1/14/21-Final Exams 4/29/21.

Technically, she did pay with earned income from the prior year. She saved from coop in 2020 where she made $30K.

rbynaker

Level 13

@GeorgiaRe Tired wrote:

Spring Semester: First day of class 1/14/21-Final Exams 4/29/21.

Cha-ching! Sounds like it might be a winner!

rbynaker

Level 13

Isn't it any part of 5 calendar months? I haven't had to research it in a while.

When I was in school Spring was mid-January through early-May so that would be 5 months even if it was less than 150 days. If the semester ended in April (or started in February) then you might only have 4 months. But I think you're probably tripping over the 5 month rule, making them qualify as a full-time student.

Without earned income greater than half of their support I think you're caught in the kiddie tax trap.

Rick

Edit: What Bill said (sorry got called away while I was writing this!)

T

TaxGuyBill

Level 15

@rbynaker wrote:

Edit: What Bill said (sorry got called away while I was writing this!)

I do that all of the time. I open the window, and a half hour later I start responding and then I realize there have been a million other comments in the meanwhile. 😂

rbynaker

Level 13

Hey, at least we got the same answer!

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded