Hello,
My kids have minimal w2 income, about $1000, BUT they have about 1300 in interest from CDs. So with only $2300 in total income, they owe taxes, about $95.
It has to do specifically with the interest/unearned income since I can play with the numbers, move the income from interest to w2 and there is zero tax owed as expected, on the same total of $2300.
From what I've read, seems like it should just be 10% tax on the interest over $1250, but those numbers don't fit either.
Help?
Thanks!
