@805teresa wrote:
@macuser_22
Can you tell me why you think this? You're the second person who I've seen summarize the TCJA change in the 8615 tax in this way. But, as far as I can tell, under TCJA, the way a "child's" income is taxed depends on the kind of income it is. A "child's" EARNED income is taxed in accordance with her own brackets, UNEARNED income FROM THINGS BESIDES qualified dividends and LTCG (such as RMDs from an inherited retirement account) is taxed according to trust brackets (which hit 37% at $12,500 as opposed to $500,000 for an individual), and UNEARNED income from QUALIFIED DIVIDENDS and LTCG is taxed according to trust brackets (but given the standard preferential treatment, so no higher than 20%). I'd love to be wrong about this, so please convince me! Thank you!
Of course. We are only discussing unearned income. See: https://www.congress.gov/bill/115th-congress/house-bill/1 "‘(4) SPECIAL RULES FOR CERTAIN CHILDREN WITH UNEARNED
INCOME.—" that describes the exact change that Congress made and the exact tax rates that apply. (Capital gains rate is just a simplified way to say it, but not exact.)
I agree with Carl that this seems more like a homework question rather than a real life tax questions so I will not respond further.
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**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
