No, the kiddie tax applies if the only income you (as a child) had was investment income such as interest and dividends, including capital gains distributions and Alaska Permanent Fund dividends. See link below that explains more about Form 8615:
Are you sure? I am trying to figure this out myself. The instructions for form 8615 includes taxable scholarship in the definition of unearned income. To me, that implies that if it is greater than $2200, then yes, it has to be on form 8615. Also, Turbotax is giving me an error indicating I need to complete form 8615. The only unearned income my son has is the scholarship. I have been googling and other tax info sites also say it is subject to the kiddie tax. I manually changed the 8615 form - changing the answer to the question about investment income greater than $2200 from yes to no, but that didn't help. The error came right back.
Are you sure? I am trying to figure this out myself. The instructions for form 8615 includes taxable scholarship in the definition of unearned income. To me, that implies that if it is greater than $2200, then yes, it has to be on form 8615. Also, Turbotax is giving me an error indicating I need to complete form 8615. The only unearned income my son has is the scholarship. I have been googling and other tax info sites also say it is subject to the kiddie tax. I manually changed the 8615 form - changing the answer to the question about investment income greater than $2200 from yes to no, but that didn't help. The error came right back.
Taxable scholarships are scholarships that exceed tuition (i,e, the 1098-T box 5 is more then box 1. The taxable part would appear on the 1040 line 1 with "SCH" next to it.)
Unearned income defined. Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. It includes taxable interest, dividends, capital gains (including capital gain distributions), unemployment compensation, taxable scholarship and fellowship grants not reported on Form W-2, the taxable part of social security and pension payments, and certain distributions from trusts. Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**