form 8615
Client has $3,999 earnings from 1099-Q (box 2). (Age 22, F/T student, dependent. Graduated from college May 2020, currently studying for academic year at a University in Spain which is not an eligible institution.) Included $3,999 in income (Schedule 1) plus his earned income of $6,554. Included $400 in additional tax from Form 5329. Question: Must figure tax for line 16 Form 1040 using Form 8615, yes or no? THANK YOU, really appreciate your feedback.
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I think you are asking, is he subject to kiddie tax? I think, yes. He is a full time student based on college in the first part of the year, and his earned income does not appear to exceed half of his total support costs for the year. But as a dependent, isn't his standard deduction equal to his earned income plus $350? So not very much taxable income.Last edited by Rapid Robert; 04-11-2021, 11:50 AM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard -
Thank you for your responds Happy long tax day.Comment
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