Thanks for clarifying! very helpful indeed!
let me first mention that my question is specifically about only unearned kid's income, i.e. dividents, interest, or capital gains, in the kids Custodial account (that i manage until the kid turns 18 or 24...).
So, my quesiton wants to confirm that:
I need to report the kids unearned income only if above $1,250 in 2023 (or $1150 in 2022).
The portion of the income less than $2500 in 2023 (or $2300 in 2022) will be taxed at 10% (the kids rate).
The remaing income above $2500 in 2023 will be taxed my marginal tax rate.
In case, the kiddie income exceeds $11000, the kid has to file its own tax return even if it only has unearned income.
If any earned income (W2 etc), the kid will need to file its own tax return if above the standard deduction ($12,950 in 2022).
Correct?
