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Case Study 4: Kiddie Tax (continued)In another scenario, the student Juan uses the grant to pay the education expenses. Neither shows up on his tax return or his parents' return. Juan has no filing requirement and files only to get his withholding (from his summer job) back. His parents' qualified education expenses would be zero. Click here for an explanation. Gross income = $11,000, no filing requirement, tax = 0. The kiddie tax does not apply. 
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