Re Kiddie Tax
What I understood from the above discussion and this article http://www.forbes.com/sites/baldwin/2013/07/24/ducking-the-kiddie-tax/#310dee8c1222 is that avoiding the kiddie tax would be based on my D having [bold]earned[/bold] income exceeding half of her overall support. Including tuition, room and board, imputed household expenses, etc. that is around $71,000, so she would have to have earned income of $35,501 this year to avoid the kiddie tax. Even with her $25,000 summer job, she’s not going to come close to making that much. And no matter how much I my move around which account (her UTMA or my bank) her tuition comes out, it will not solve the kiddie tax problem because my money and her unearned income are equally bad for determining support for kiddie tax purposes. Anyone see any problems in this? I’m going to run a test doing the Form 8615.