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February 23, 2021
Question

Do I need the Form 8615, I am 19 and it won't go away, but my parents social is required, how do I fix this? It wasn't required last year

  • February 23, 2021
  • 1 reply
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My mom says I don't need it, but one how do I get rid of it, and do I actually need it, even though it wasn't require last year?

1 reply

rjs
Employee
February 23, 2021

Your situation this year is probably different from last year. Form 8615 is for "kiddie tax." It's not just for kiddies. For 2020 you are subject to kiddie tax if you have unearned income, such as investment income, of more than $2,200, you are not filing a joint return, and any one of the following is true.
(1) You were under 18 at the end of 2020.
(2) You were 18 at the end of 2020 and your earned income (from working) is not more than half of your total support for the year.
(3) You were under 24 at the end of 2020, you were a full-time student, and your earned income (from working) is not more than half of your total support for the year.


If you meet these conditions for 2020, you must include Form 8615 in your tax return.


The kiddie tax applies to any "unearned income," not just investment income. Unearned income is basically any income that wasn't from working. It could be interest from a bank, Social Security benefits, or unemployment benefits. Here's the definition of unearned income for kiddie tax, from IRS Publication 929. Although it's not mentioned in Pub. 929, taxable scholarship income is also considered unearned income for kiddie tax.


"Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Unearned income includes amounts produced by assets your child obtained with earned income (such as interest on a savings account into which you deposited wages)."