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March 29, 2025
Question

Full Time Student Status

  • March 29, 2025
  • 2 replies
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I have 2 college attending daughters with passive income over $6K.  One also has a W-2.  They are required to pay taxes at my rate via Form 8615.  Can I not declare them (it's only worth $500 each to do so) and say they are not students?  I'm looking for avoidance, not fraud.  But MUST I declare they are students?  If they are not, given they are over 18, they would pay at their own rate...not mine.

Correct?

Love some advice here.

 

    2 replies

    KrisD15
    March 29, 2025

    Unless they supply more than half their own support, they would not be allowed to file as a non-dependent taxpayer. 

    Given that, it doesn't matter if you don't claim them, they would still be liable for the Kiddie tax.

     

    Are there any education credits available for you? 

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    LB42Author
    March 29, 2025

    Thank you.  Not the answer I was hoping for, but certainly what I expected.  I don't believe I have any credits here.  They are going to super cheap schools and I make a good salary.  Any suggestions of places to look?

    Hal_Al
    Employee
    March 29, 2025

    Q. Can I not declare them and say they are not students? 

    A. No.  I'm looking for avoidance, not fraud.

     

    Q.   But MUST I declare they are students? 

    A. Yes. Even if you do not claim them as dependents, they are still subject to the "kiddie tax' (form 8615). 

     

    Q.  It's only worth $500 each to do so?

    A. There's also a (up to) $2500 tuition credit, unless your income is too high (>$90K. $180K married filing jointly)

     

    There is no way, other than tax fraud, to avoid the kiddie tax.