I have a client that is 23 with unearned income and no earned income. She made 30K earned the prior year, 2020, and filed/claimed herself (no kiddie tax).
For 2021, she did not have earned income, did not live at home, had 10K of unearned income, AND did not qualify as a full time student for more than 5 months. The way I read it, being part time is enough to disqualify the kiddie tax, correct?
She took the following hours: Fall 10 hrs, Spring 14 hrs, Summer 4 hrs. Spring was the only full time semester which is 4 months.
In addition, you could argue she paid half of her support, although, the math gets fuzzy. Attends a state school under scholarship (no tuition). Only expenses are school fees and room/board.
Thanks in advance!
@GeorgiaRe Tired wrote:
Spring was the only full time semester which is 4 months.
So it completely ended by April 30th? If any of the semester went into May, that is 5 months which makes her a full-time student.
And she did not pay over 1/2 of her support with earned income.
Isn't it any part of 5 calendar months? I haven't had to research it in a while.
When I was in school Spring was mid-January through early-May so that would be 5 months even if it was less than 150 days. If the semester ended in April (or started in February) then you might only have 4 months. But I think you're probably tripping over the 5 month rule, making them qualify as a full-time student.
Without earned income greater than half of their support I think you're caught in the kiddie tax trap.
Rick
Edit: What Bill said (sorry got called away while I was writing this!)
@rbynaker wrote:
Edit: What Bill said (sorry got called away while I was writing this!)
I do that all of the time. I open the window, and a half hour later I start responding and then I realize there have been a million other comments in the meanwhile. 😂
Spring Semester: First day of class 1/14/21-Final Exams 4/29/21.
Technically, she did pay with earned income from the prior year. She saved from coop in 2020 where she made $30K.
@GeorgiaRe Tired wrote:
Spring Semester: First day of class 1/14/21-Final Exams 4/29/21.
Cha-ching! Sounds like it might be a winner!
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