In prior years, the reason the parent’s income/tax was entered was that the child’s tax rate for the kiddie tax was the parents’ rate. Now the rate is the estate rate so it doesn’t matter what the parent’s rate is.
I just found that example in a search for the OP. My child who paid the extra tax has graduated and is an independent for taxes now, so didn’t do an 2018 kiddie tax form.
I don’t think the form 8615 will be generated if your child doesn’t have taxes owed as in your example of earned income plus scholarships being under $12k
My D had work income of $6,000 and taxable scholarships of $4,000.
On the wages line of the 1040 it added both together to $10,000 but put $4,000 with SCH next to it on the left of the wages line.
Standard deduction covered all of this income and her 1040 line 10 taxable income was $0.
The program generated form 8615 and it showed unearned income of $4,000 and subtracted $2,100 from that for net unearned income of $1,900.
Then on another line it asked for taxable income from 1040 line 10 and that was $0.
It then said the lower of the two amounts is used to figure kiddie tax, and in her case that was $0, so no kiddie tax was figured.
She filed a return because she wanted to get a refund of the federal tax she had withheld, and it’s easier to just link the FAFSA to the tax return than to provide a non filers verification form.
This means, however, that adjusted gross income is that total of $9500, right? So this means that the full amount is taxable at the state level? For adult dependent children in my state, the only amount excluded from taxable income is $1500. Does that seem right? No, not a huge total tax burden but want to be correct.
Every state that assesses an income tax has its own set of rules, deductions, credits, etc. It’s impossible to provide any help with state tax questions without knowing which jurisdiction controls.
@BelknapPoint Yeah I figured, but tossed it out there on the chance that, if it were really just WRONG for some obvious generic reason, someone might share the reason.