Tax Question--1099 MISC Box 3, Other Income, Summer Research Stipend

[CT1417]

@Twoin18

“In summary, kiddie tax will not come into play”

While true at a federal level, kiddie taxes may still come into play for state tax in states that have not conformed to the new $12K standard deduction.

Our D would have owed CA taxes at her parents’ marginal rate on her room and board scholarship if she had not become resident in the (conforming) state where she attends college. The trade off was loss of the federal $500 dependent tax credit.

Thanks. I have not looked at CT yet, but when older son earned W-2 wages higher than this child’s stipend & TA wages, he did not pay CT tax. TT was not indicating a CT tax liability, but good to point that out in case anyone else ever plods through this thread.