TaxGuyBill
Level 15
02-26-2021
03:21 PM
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If the 1098-T is accurate in the amount of tuition and the amount of scholarships received, yes, the child will be subject to the Kiddie Tax.
Be aware there is a horrible error in ProSeries in regards to the Kiddie Tax. You need to open up some Kiddie Tax capital gain/Schedule D worksheet (even if Schedule D does not apply) in order for the program to correctly calculate the tax.