I learned about the kiddie tax a while back and I’m not entirely sure if it applies to me.
For some background:
I am 22 years old and I was a full-time master’s student during the Spring semester of this year, but currently only part-time and will be graduating in December. I had a job last year, but I did not make any income this year other than a small academic scholarship. Since I was unemployed while trying to finish my degree, I started trading and made some decent gains. I have a full-time job offer starting in January, and I wanted to take advantage of my 0% capital gains tax rate, but I remembered the kiddie tax existed and now I’m not sure if it will apply to me since I live at home with my parents.
Any advice or input would be greatly appreciated!
Kiddie tax for graduate student living at home
byu/Objective-Ad-2944 intax
Posted by Objective-Ad-2944
1 Comment
Most likely it applies to you.
You’re under age 23
You were most likely a full-time student for any part of 5 months (ie, if the semester started on Jan 30th and ended on May 1st, that’s 5 months for this determination).
You don’t have earned income in excess of half your support
At least one parent is living
You presumably have unearned income exceeding $2700