As I cited above, the support definition for kiddie tax is exactly the same as the definition for dependency, because the definition in the law is literally, "see the definition for dependents."Not trying to get into a p***ing contest toddthebod, but the items you quoted refer to dependency. I think (maybe I’m wrong) the OP is referring to Kiddie Tax on unearned income, which is irrespective of dependency status.
Thanks to you both.I see what toddthebod is saying now, and although the law sounds counterintuitive, I agree with his interpretation.
Basically, add up all of the support that was paid for the student, and has others have mentioned, don’t forget the support during the summer months. The support that was paid by the scholarship should be removed for purposes of the dependency tests. As such, in this scenario it’s possible that the OP’s student will be a non-dependent. This will depend a bit on how much support is provided outside of college expenses.
I think claiming the student as a non-dependent on the first semester might not fly, just because there would be seven months of non-college support, but YMMV
I agree that for 2024 my daughter won't be able to show 50% support, but I'll move forward with your suggestions as I plan my support and daughters taxes for 2025.
Right now she plans to spend the summer of '25 on campus, so she won't be home much in '25 except for holidays.
I'm giving her my old car to take to school, should I gift that to her in '24 so it won't be considered support in future years? What about gifting her some money in '24? Any issues with that for future year "support" tests?
Statistics: Posted by moneym — Sun Aug 04, 2024 3:03 am
