Kiddie Tax - where to put the parents income?

[BulldogTom]

I think one of the tax changes we got in December was the Kiddie Tax was reverting to the old method retroactive to 2018?   Did I mis-understand what I thought I read?   

On the Kiddie Tax form, I don't see a place to put in the parents income.   Is the form correct?

Thanks.   My brain is fried.

Tom
Modesto, CA

[B. Jani]

You are correct that it was revert to pre-18 rules. so no more trust tax rate. as far as forms, probably they not updated yet.

[DANRVAN]

On 3/4/2020 at 6:40 PM, BulldogTom said:

the old method retroactive to 2018?

That is true.  I have not had to deal with it yet.

[Lion EA]

I think you have a choice for 2018 and 2019 of parents' rate OR trust rate. If low income, trust rate might be the same. If you have to deal with a contentious divorce or other than the parents (auntie hired you), you might need trust rate. I have a grandfather doing the investing and hiring me to do his grandkids' returns; luckily, the father in TN is great about emailing me select numbers off his joint return for me to use for his kids' kiddie tax schedule. (And, that's two 2018 amendments I'll prepare after tax season, because the 2018 kiddie tax did jump up over 2017 for grandson and granddaughter.)

[BulldogTom]

Thanks for the replies.   I don't think ATX has the form updated to make the choice.   I will look again but I scoured the form pretty good before I posted.   Thanks for confirming my understanding of the changes to the law.   At least I know I was not mistaken on what I learned at my seminars.

Tom
Modesto, CA

[Lynn EA USTCP in Louisiana]

I thought ATX said they were not going to update the 2018 forms for the extenders until after 4/15.  I  might be wrong ......

[SueC]

There is a worksheet on page 5 of the instructions to Form 8615 that calculates the tax based on the parents income.  It isn't part of the form itself any more, which is good when you supply a copy of the child's return to them and don't want them to see the parents income.

[schirallicpa]

SueC - thank you so much for posting that......I was overlooking it.  And getting a little panicky on the amount this child was owing!!