Form 8615 - Kiddie Tax

[ETax847]

Client's child has $2,424 in capital gains from a brokerage account in child's name.  This is my first time filling out form 8615 and I show the tax to the child on her return to be ~ $1k.  Is there something I'm missing?

[Lion EA]

Did you enter the parents' information correctly? And, that of any siblings?

Step through the worksheet your software generates. Basically, the first $1,100 is excluded, the second $1,100 is at the child's rate (10%), and the excess at the parent's marginal rate. Did child have any other income? If parents' rate is low enough, capital gains can be at the 0% rate. Step through the worksheet...