dkelley
Level 2

Did you notice that college kids collecting unemployment groups that income into the 'unearned' pool of money... making the kiddie tax form 8615 come into play.  Even if you check NO to the investment income question, it limits their standard deduction to 4000.  This can't be correct?  Any thoughts?!

Thank you!  

0 Cheers
TaxGuyBill
Level 15

Yes, Kiddie Tax may apply.

No, the Standard Deduction is not necessarily $4000.  It is generally the amount of their Earned Income plus $350 (up to a maximum of $12,400).

https://www.irs.gov/pub/irs-pdf/p501.pdf#page=25

Just-Lisa-Now-
Level 15
Level 15

Yep kiddie tax is kicking in on dependents!   


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪