Sorry, I don't quite get it. IRS publication for form 8615 states:
Change in tax rates. The Tax Cuts and Jobs Act of 2017 has modified the tax rates and brackets that you will use to figure the tax on your 2018 unearned income. Your tax rate is no longer affected by the tax situation of your parents or the unearned income of any siblings. Instead, all net unearned income over a threshold amount of $2,100 for 2018 is taxed using the brackets and rates for estates and trusts. These are shown in the following chart.
This makes it seem that only income above $2100 should be taxed at the "kiddie" tax rates?
Also from <a rel="nofollow" target="_blank" href="
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However, the new rates can be higher than the parents’ rates which would have applied under prior law. For example, the kiddie tax rate is 37% on income over $12,500. A married couple would have to have over $600,000 in income in 2018 to pay tax at this rate. On the other hand, children with smaller unearned incomes could pay less under the new tax rates. For example, a child can have up to $4,650 in unearned income and pay only a 10% tax on $2,550 of it, for a $255 total tax. Most parents pay income tax at a higher rate than 10% (married taxpayers would have to have a taxable income of $19,050 or less to pay tax at this rate). With the new tax rates, it's important to monitor how much unearned income a child has during the year to make sure he or she avoids the high 35% or 37% brackets.
What am I missing?
