NMF Scholarship and taxes

allyphoe
Fri, 28 Feb 2014 14:55:35 +0000

@lisa6191 - You start with the Kiddie Tax code section, 1(g), which refers you to Sec 911.

1(g)(4)(A)In general.—The term “net unearned income” means the excess of—
1(g)(4)(A)(i) the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2))

Unfortunately, the spirit of the law does not trump the plan language of the law. AMT was originally instituted to prevent a tiny handful of people (<30? something like that) from evading taxes, and that argument gets you precisely nowhere - people have litigated it unsuccessfully.

Neither 1040 instructions nor the titles of forms are authoritative, and carry zero weight.