Say a 20 year old, full time college student pays for 100% of his school expenses to the tune of $40,000. He has zero enarned income. The way I understand the law, he would not be a dependent of his parents because he provided 50% or more of his support but because his earned income is not 50% or more of his support he will pay kiddie tax rates.
Although this seems absurd to me, I guess the impact will not be too bad as the student will get the on of the college tuition credits to offset his tax.
Although this seems absurd to me, I guess the impact will not be too bad as the student will get the on of the college tuition credits to offset his tax.
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