On Mar 8, 2:00 pm, alle <alf...[at]yahoo.com> wrote:
- quote -


Whether the parents can include the kids income in their own return
depends on the unearned income of the kid & whether the kid earned any
income via a summer job.

However, I have seen quite a few kiddee tax situations where the
answer dictating that the kid file his/her own return gets dictated by
the state. Frequently, there is not enough income at the state level
to generate a tax liability, or the state lets the kid pay tax at its
own graduated tax rate schedule.


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

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alle wrote:
- quote -

The income from the trust should be treated just as it is reported on
the K-1, namely interest, dividends, etc. Whether it's reported on a
K-1 or a 1099 is irrelevant.

Capital gains *distributions* (from mutual funds) are eligible for the
parents' election, actual capital gains from sales of assets on Schedule
D are not.

- quote -

Investment income under $1700 is not subject to "kiddie tax". To keep
things simple and also obtain the best tax result in this situation, the
child should file his or her own return.

-Mark Bole

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"alle" <alfrae[at]yahoo.com> wrote in message
news:13t5hriq60dvjbb[at]corp.supernews.com...
- quote -

Child files a full 1040 with 8615. Parents cannot report the child's income
on their own return when capital gains are involved.

Ira Smilovitz

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Condor wrote:
- quote -

Investment income is less than $850 but K1 trust distribution brings it
up to $1500.

Al F.

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- quote -

Does the child's investment income exceed $850?


Condor

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If a child under 18 has unearned income, dividends, interest and
cap.gains plus a distribution from a trust ( K 1) should the parent
report his income on their return or should he file his own return?
Forms 8814 and 8615 do not cover the case for K1 distributions.
Al F.

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