New Jersey adopts the federal definition of "dependent". A minor child must file a New Jersey gross income tax return if he or she has income that meets the filing threshold. New Jersey has no provision similar to IRC Sec. 1(g) (commonly referred to as the "kiddie tax"), which applies tax to certain unearned income of a minor child at the highest marginal tax rate of the child's parents and allows the parents to elect to report the child's income on their return.
You claim the child as a dependent as usual. When filing the child’s return be sure to check the box saying someone else can claim him. TurboTax will generate the necessary Kiddie tax form on his return if required.
