Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

Good thing I don't do returns. ;-)

Stu

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"Benjamin Yazersky CPA" <johndoe[at]nowhere.com> wrote:

- quote -

Right. In fact, I think the idea is that the first 850 is
"tax free." The second 850 is taxed at the kids rate, and
everything above 1700 is taxed at the parents rate.

I assume by marginal tax rate, you mean marginal tax rate
for capital gains. I had taxable income in the area of 56k,
and a capital gain around 800. Is my marginal tax rate 5%
for cap gain?

- quote -

Right, I did my taxes and entered my taxable income on the
8615 form and followed the instructions.

Thanks for the response, sorry about alluding to personal
data, but I'm confused and want to get this right.

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

- quote -

Just the opposite. It only applies to investment income.

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

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"Benjamin Yazersky CPA" <johndoe[at]nowhere.com> wrote:
- quote -

I thought the kiddie tax only applied to earned income.

Stu

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"Anon" <phychobm[at]mindspring.com> wrote:

- quote -

the concept of the kiddee tax is for your kids to pay tax at
your (the parent's) marginal tax rate

so, you can't do the kids returns until yours is done you
need to put in your (the parent's) income (don't have form
infront of me now, so I can't state the line #)

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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I have a 12 year old son whose investment income was over
4000. Since he's under 18 and his income was over 1700, I
filled out a Form 8615 to (try to) figure his tax.

(Oh, btw, I also have a 14 year old daughter whose
investment income requires this form, too. That made it a
little complicated.)

Does it make sense that the Form 8615 made no difference,
that is to say, line 17 (tax on his income as computed from
Dividend and Cap Gain worksheet) was a larger value than
line 16?

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