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Old 12-27-2016, 10:49 AM
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Smile Question about the kiddie tax and being claimed as a dependent. HELP PLEASE

I am a 22 y/o person working full time, but I was a student for all or part of 5 months of this year which makes me a full time student. By year end, I will have earned income of around 10k and unearned income of around 20k from the sale of stock. I will be claimed as a dependent on my parent's taxes.

My question is about the kiddie tax. Will being claimed as a dependent effect my capital gains tax?

Because I was a full time student and under 24, my parents can claim me as a dependent because they provided half of my support.

However, the kiddie tax requirements state that as long as I had enough earned income to have provided half of my support (which I did, 10k is more than enough) , then I am not subject to the tax.

But because the requirements to claim a dependent state that if someone provided half of your support, they can claim you. So because I made enough to have provided half my support, I am not subject to the kiddie tax, however, because I didn't actually use my earned income to cover half my support, I can be claimed as a dependent. Right?

Please let me know if I got this wrong. I don't want to get hit with a huge tax on my capital gains.


Last edited by Whatagreatguy : 12-27-2016 at 11:00 AM. Reason: Better title


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