The Wall Street Journal today says that the Kiddie Tax was corrected last year and that for 2018 and 2019 we can choose between the old rule (capital gains taxed at parents' rate) and the now-repealed new rule (capital gains taxed at trust rates).
How do I do this? I have TurboTax Basic for 2018, Deluxe for 2019. So I fire up TTax 2018 and open the young person's tax return to file a 1040-X. Will all the instructions be there?
(I work only with the forms, I don't use Step-by-Step unless I'm forced to.)
And am I assured that TTax 2019 will have this option built in? I did a rough cut last month on the young person's taxes and saw nothing to indicate that the law has changed.
Thank you!
No at this time, 2018 has not yet been updated to re-calculate the Kiddie tax but please check back it should be ready for amending soon.
See 2018 Extenders passed under Taxpayer Certainty and Disaster Tax Relief Act of 2019
See this TurboTax support FAQ for the 2018 amend program availability with the tax extenders - https://ttlc.intuit.com/community/tax-topics/help/2018-extenders-passed-under-taxpayer-certainty-and-disaster-tax-relief-act-of-2019/00/1197091
Thanks for this info. What's the best way to get notified when TT 2018 supports the updated filing of the kiddie tax from that year? I'd like to refile with TT but doesn't seem to support it yet. Just looking to be notified when it does.
Thanks
You can use the information below to sign up for text alerts, but I am unsure if these updates will encompass the 2018 updates.
To sign up for text alerts, please follow the steps below:
1. Sign into your Online account
2. Scroll down to Intuit Account in the bottom left panel
3. This will bring you to the Account Settings page
4. Select Security on the left
5. Select Edit and enter the phone number that you wish to use
6. Next select Turn On for the two step verification
7. You will see a question that asks 'How should we contact you'? and select Text message
8. Be sure to select 'Turn On' to consent to get a text message to confirm your contact info
Thanks but it's the 2018 updates I'm most interested in. Will this thread here be updated when those are ready?
No this thread will not be updated when those are ready, as this is an online forum.
You would need to follow the instructions above to be notified.
OK and done but that seems like a security setting in the account. I'd like to be alerted when Turbotax download (ie -windows version) for 2018 will be updated with these latest tax changes. Do you alert via the same mechanism?
@joelevy wrote:
OK and done but that seems like a security setting in the account. I'd like to be alerted when Turbotax download (ie -windows version) for 2018 will be updated with these latest tax changes. Do you alert via the same mechanism?
See this TurboTax support FAQ to sign up to be notified when the software for 2018 has been updated with the Tax Extenders - https://ttlc.intuit.com/community/tax-topics/help/2018-extenders-passed-under-taxpayer-certainty-and-disaster-tax-relief-act-of-2019/00/1197091
I went to that link but don't see where to sign up for notifications when the update is posted.
@joelevy wrote:
I went to that link but don't see where to sign up for notifications when the update is posted.
Within the FAQ the sign up is shown in this sentence -
Please sign up here and we will send you an email once this is completed
Turbo Tax 2018 has now been updated. If you load the software, it should offer to update, and the updates are labeled "Critical".
This. Is this update for "The Secure Act" passed by congress?
Yes. TurboTax updated its 2019 software in April and the 2018 software in May. It's now supposedly accurate, with the option (which you can access either through Step-by-Step or by working on Form 8615) to select the parental tax rate. This sometimes but not always results in a lower tax for the youngster. If TTax has done this correctly (I'm not entirely convinced), then starting with 2020 some youngsters are going to be disadvantaged by being forced to use the old rules. But at the moment we have our choice and can actually use the Kiddie Tax rules for one youngster and the parental rates for a sibling.