- quote -

If his total income is less than $750 (the minimum standard
deduction for a dependent), you don't have to file a thing.

If his taxable income is less than $750 (I think that's the
number), he just files as a normal dependent.

Only if his taxable income is more than $750, is there a
"kiddie tax" return.

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patel227[at]yahoo.com (tweety) writes:

- quote -

No. The $750 filing requirement applies to all dependents.
See the 1040 instructions.

Phil Marti
Topeka, KS

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- quote -

So, in my case you guys are saying even though my son's
interest was only $200 I have to file kiddie tax retun for
him.

And for my return I just ingnore it.
correct.

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Stuart Bronstein wrote:
- quote -

The "kiddie tax" is calculated with the child's
income over a certain amount taxed at the parent's
tax rate, and if all the income is from interest
and dividends*, there is the option of including
the income on the parent's return. If done that
way, it increases the parent's AGI, which may or
may not be a good thing.

* I don't know if the special dividend rate for
2003 effects this.

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Stuart Bronstein <spamtrap[at]lexregia.com> wrote:
- quote -

If the child is under age 14, the kiddie tax form is used to
determine the kiddie's income tax, which combines
information from the kiddie's tax return, other kiddies' tax
returns, and parents tax return.

The parents are never required, regardless of child's age,
to report child's income on their own return.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Stuart Bronstein <spamtrap[at]lexregia.com> writes:

- quote -

The income can be included on the parents' return or taxed
at the parents' rate on the child's return. See Pub 17.

Phil Marti
Topeka, KS

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patel227[at]yahoo.com (tweety) wrote:
- quote -

I thought the rule was that if the child is under 15 his
income must be included on the parent's return. Am I out of
date?

Stu

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- quote -

That's exactly what it means.

Phil Marti
Topeka, KS

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philmarti[at]aol.com (Phil Marti) wrote:
- quote -

What do you mean "I have a choice". Does that mean I can
either file taxes for him separately or count the interest
into mine?

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patel227[at]yahoo.com (tweety) writes:

- quote -

If your son is under 15 you have a choice. Otherwise it's
his income on his return. See the 1040 instructions.

Phil Marti
Topeka, KS

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"Salemtig" <rkozloff[at]tampabay.rr.com> wrote:

- quote -

I also have a UTMA account for my son in a CD. My question
is, Do I have to do a tax return for him just for the
interest he earns on the CD? Or somehow is this considered
my income and I have to account for it in my taxes?

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"Salemtig" <rkozloff[at]tampabay.rr.com> writes:

- quote -

The entire loss will carry over if the $1900 was earned
income, e.g., wages. See the Schedule D instructions.

Phil Marti
Topeka, KS

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I have a similar situation with a few twists: opened a young
investor UTMA for my son 5 years ago. decided to cash it in
2003 to pay for some college expenses (he was 19 years old
in 2003). Overall, the fund showed a loss of approx $650.
Can he use this to counter income of about $1,900 earned
last year?

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G M <zlmei[at]hotmail.com> wrote:

- quote -

Yes and yes.

Read the Schedule D instructions carefully.

In the old days, ending with the 2002 tax returns, if you
had a capital loss carryover, you would complete a Capital
Loss Carryover Worksheet in the Schedule D instructions, and
the next year you would use the carryover loss when
completing the next year's schedule D.

Starting with the 2003 tax returns and schedule D, you
postpone completing that capital loss carryover worksheet
until you are ready to fill out thre 2004 schedule D.
Doesn't make too much sense to me, but that's how it goes.
So mark your copy of the 2003 freturn in your own files with
big red letters that there is a capital loss carryover to
consoider for 2004.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I have a tax question (for my daughter's tax) of mutual fund
loss carrying over.

I opened a UTAH account at Vanguard for my daughter (6 yrs
old now) several years ago, invested the initial money (10K)
with three funds. In Jan. 2003, I consolidated three funds
to one, basically moved the money from two funds (Growth
Index and Value Index) into the 3rd one (500 Index Fund). So
the account has a loss due to the redemption of the two
funds, the total short term loss is $25, but the long term
loss is about $2200. Other than this the account has
dividends distribution of about $100 this year.

So now comes to my questions for her tax for year 2003.
Assuming there is no other incomes and losses except UTAH,

Question 1: In her 2003 tax form, the net income would be
100 - 25 -2200 = -2125 (net loss). Can this amount be
carried over to year 2004? Assuming if I take some money out
from this account in 2004 and it ends up with some gains,
can I use this year's loss (-2125) to offset future gains?

Question 2, If the above answer is Yes, can I do it year
over year until all the losses are "used up"? This means I
am not "wasting" this year's loss.

Thanks for your answer.

GM

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