Diane Posted March 20, 2009 Report Posted March 20, 2009 Client has a 4 year old with 1,773 of unearned income, of which 1,473 is capital gains. If I use Form 8814 on the parents' return the tax is increased by 87.00. Apparently a return is required if gross income is more than 900.00. If I file a tax return for the 4 year old, the tax is 0. Am I doing this right? Or am I missing something? Diane Quote
RitaB Posted March 20, 2009 Report Posted March 20, 2009 Client has a 4 year old with 1,773 of unearned income, of which 1,473 is capital gains. If I use Form 8814 on the parents' return the tax is increased by 87.00. Apparently a return is required if gross income is more than 900.00. If I file a tax return for the 4 year old, the tax is 0. Am I doing this right? Or am I missing something? Diane Diane - See if you are completing line 9 on the 8615, and that the box beside line 9. Form 8615 is a real jewel, huh? ---Rita Quote
Diane Posted March 20, 2009 Author Report Posted March 20, 2009 The child's investment income is less than 1,800. Diane Quote
RitaB Posted March 20, 2009 Report Posted March 20, 2009 The child's investment income is less than 1,800. Diane Oh, wow, my bad. No, I think you're doing it just right. Child would pay zero, unless the $1400 is short term. Good thing, too, cause a four-year probably can't write a check. Good investor though, huh? Quote
Diane Posted March 20, 2009 Author Report Posted March 20, 2009 Thanks, The capital gains are capital gain distributions from the 1099. Diane Quote
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