The IRS changed the tax laws around the kiddie tax and made them retroactive to 2018. Did TurboTax update their 2018 tax software so I can amend my return ?

[jekoniak]

I just updated the 2018 TurboTax software but it shows that I owe the same amount as before.  I am either not doing something that I should be doing (and could use some help here) or TurboTax did not update their software.  IF the latter is the case, does anyone have suggestions on how I should amend my return?

[DavidD66]

The IRS is allowing taxpayers the election to calculate the kiddie tax for 2018 and 2019 using the child’s allocable parental tax instead of the tax rates for trusts and estates. The election is made on the taxpayer’s return or by attaching a statement to the return. A taxpayer can choose whichever method provides the lowest tax liability for 2018 and 2019.To make the election for 208 an amended return must be filed to claim a refund.

 We are expecting the changes necessary to file a 2018 amended return to make this election ready approximately mid-March. You can sign up HERE to be notified when the update has been made.  

[jekoniak]

Thank you for your response and I am glad to hear that TurboTax is addressing this change.  I logged into my TurboTax account but when I click on your link to sign up to be notified when TurboTax has updated their software, I get the following message "Access Denied - you do not have sufficient privileges for this resource..."

Do you have another link that is available to your TurboTax users?

Thanks,

Jon

[KathrynG3]

These changes should already be in place now.

To return to this area in your return, from the search for form 8615 in the search box. Select the Jump to link in the search results and follow the prompts.

From within the 2018 tax software, you will be asked for your preference: Answering Yes to the Election to Use Pre-TCJA Rules will tax the children's unearned income at the parent's rates. 

Selecting No would tax the children's unearned income at the estates & trusts rates.

For more information, see: Topic No. 553 Tax on a Child's Investment and Other Unearned Income (Kiddie Tax) | Internal Revenue ...