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KIDDIE TAX

JHOG
Level 1

IS A 20 YEAR OLD COLLEGE STUDENT WHO RECEIVES AN IRA DISTRIBUTION FROM A DECEASED UNCLE SUBJECT TO THE KIDDIE TAX?

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2 Comments 2
pamdory
Level 8

IRA/Pension income is considered unearned income, so if the student is claimed as a dependent of their parents there may be Kiddie tax to be reported.  

TaxGuyBill
Level 15

@pamdory wrote:

so if the student is claimed as a dependent of their parents there may be Kiddie tax to be reported.  


The 'kid' may be subject to Kiddie Tax even if parents are not able to claim him as a dependent.