Bob Sandler wrote:
- quote -


Thanx for the correction. I'm always getting my 8814's and 8615's mixed
up...

Usually the household is better off if the dependent files his own
return when there are qualified dividends or capital gains
distributions, some of which would get zero percent tax on the
dependent's return this year (2008). You pretty much have to draft
numbers both ways to see what is best in many cases.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

If the son's investment income is over $1,800, some of it
will probably be taxable at Dick's tax rate, but not on
Dick's return. The kiddie tax will have to be calculated on
the child's return (using Form 8615). That also means that
Dick would have to finish his own return in order to have
the information needed for the kiddie tax calculation.

Bob Sandler

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Alan wrote:
- quote -

Fortunately he can still use a Form 1040-EZ.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Mark Bole wrote:
- quote -

Mark:
You state that he has to file even if his unearned income is
under $900 but over $300... but your example is Dick's given:
Unearned income of $1200.

Filing for a dependent under age 65 is required if any of the
following 3 tests are passed:

1. Unearned income over $900. Dick's child met this rule. He must
file.

2. Earned income over $5450. Child failed this rule.

3. Gross income more than the LARGER of $900 or earned income up
to $5150 plus $300. Child passed this test. He must file.

So Dick's dependent must file because he passed at least one of
the tests. I cited the first rule because it was the obvious one.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Alan wrote:
- quote -

He would have to file even if his unearned income was under $900 but
over $300.

To put another way, his std deduction is the greater of $900, or earned
income plus $300. In this case, suppose the facts are:

interest = 1200
earned = 2800
total = 4000

std deduction = 2800 + 300 = 3100

taxable income = 4000 - 3100 = 900

so he must file and pay tax.

If his investment income tops $1800, some of it will probably be taxable
on your return. Since he has other than just investment income, you
cannot elect to report his interest on your return.

All assuming he is your dependent, of course.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Dick Adams wrote:
- quote -

over $900. He gets no personal exemption and his std deduction is
the lesser of $5450 or the sum of his earned income and $300.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

My childbride is on my case to file all returns by the end
of February. This has to do with financial aid for my son
going to college in the fall.

I am concerned that my tax guy will have a heart attack when
he sees me in the same year a return is due.

I decided to again file my son's return. I went through the
papers and found he actually listen to me and filled out his
W-4 so he had no taxes withheld.

But he has around $1200 in interest income. His total income
is under $4000. Looks to me like there is no reason to file
other than to have a return on record.

Dick

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >