- quote -

Yeh, I was hoping I had done something wrong. Oh well.

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"toller" <toller[at]yahoo.com> wrote:

- quote -

Seems right to me.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"toller" <toller[at]yahoo.com> writes:

- quote -

It doesn't seem obviously wrong -- for exactly the reason
you state. Since the 11 year old is under 14, the kiddie
tax rules apply, and past a certain amount, his dividends
are taxed at your rate.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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You should also look at whether siginificant assets in a
child's name hurts college financial aid. The formulas lean
toward expending a child's assets much faster than a
parents- 33% a year versus 6%.

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"toller" <toller[at]yahoo.com> wrote:

- quote -

As you seem to be aware, the 11 year old pays at a higher
rate than the 17 year old because of the kiddie tax. If
you've double checked the numbers, I don't know what else
there is to look at.

--
Phil Marti
Clarksburg, MD

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toller wrote:

- quote -

Without being privy to the actual tax returns, it's hard to
say whether your calculations are right or wrong. For the
child to be taxed at your rate, investment income would have
to exceed $1600. Then it is the excess that is subject to
the parent's rate. Qualified dividends are still subject to
the CG rates. Is it possible for the amount to be double?
Yes, especially if you are in a much higher tax bracket than
the 17 year old.

--
Alan
http://taxtopics.net

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My parents gave my children (11 and 17) some stock that
produced dividends; the same for each of them.

The 11 year old owes more than twice as much tax as the 17
year old because he is stepped up to my tax rate. Does this
seem right, or should I dig into it further?

Thanks.

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