Inherited IRA, the Kiddie Tax, AND Filing to avoid the kiddie tax
So, the quick story…Dad Died, leaving 17 year old minor the IRA (divorced parents), the kid is exempt the first year, 2nd year must begin RMDs (Has this been clarified as opposed to taking whenever but BY THE END of the 10 years?) BUt if taking funds $25K this then triggers the kiddie tax.
Heres the REAL Question…Can the mother NOT CLAIM HER, THe Daughter then file her own taxes filing (SINGLE STATUS) and the Kiddie tax be avoided altogether?
Permalink Submitted by Jay Wiedwald on Wed, 2023-04-05 06:31
No. Kiddie tax rules are independent of dependency. See: https://www.irs.gov/taxtopics/tc553.