Form 8615 (kid's investment income)

[Catherine]

Client is a dependent who has investment income (grandpa set up UTMA acct for his college when he was a baby). Sold a bunch to pay for spring semester and I'm trying to figure out if he needs the 8615.

Instructions say one of the requirements is over 18/under 24 and a "full-time student" -- and that's where I'm getting stuck.

He WAS a full-time student -- spring semester only. Didn't go back in the fall (taking time off). He meets all the other requirements: more than $1900; required to file; at least one parent alive; no joint return; over 18/under 24, did not have earned income more than half his support. So the whole thing hinges on "full time student" and whether that means all year or if one semester counts.

TIA,

Catherine

[jainen]

>>the whole thing hinges on "full time student" and whether that means all year<<

The Instructions for Form 8615 refer you to Pub 929, which says (in the Glossary), "A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student."

There is additional information about what qualifies as a school, but this is the same definition we use for education credits, dependency, etc. Full time means 12 semester units (or whatever else the school says), and enrollment includes days before and after the actual attendance dates.

[kcjenkins]

Cat, if he was full time for one semester, he's good.

[Catherine]

Thank you!