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It really depends if your parent is in a high tax bracket or if you have a lower amount of investment income. Without seeing your return, I can't tell you why your taxes changed.
But here is the reference:
Usually, the TCJA rate ( Estate and Trust rate) benefits you if your parent is in a higher tax bracket or you have a smaller amount of unearned income. Otherwise, the Pre-TCJA rate could be better. For example, if your parent's income is in $300,000, which is in the high-income tax bracket (~35%) and let say you have about $2,500 investment income. The TCJA rate would benefit you more as you will be in the 10% or less. You would need to enter all the information and select both of the rates for comparisons.
See the images below.
The 2019 rates and brackets were announced by the IRS in Rev. Proc. 2018-57 on Nov. 15, 2018.4
- $0 to $2,600 in income: 10% of taxable income
- $2,601 to $9,300 in income: $260 plus 24% of the amount over $2,600
- $9,301 to $12,750 in income: $1,868 plus 35% of the amount over $9,300
- Over $12,750 in income: $3,075.50 plus 37% of the amount over $12,750
The way how Kiddie Tax is calculated by using the Pre-TCJA rate:
First, add up the child’s net earned income and net unearned income. Then subtract the child’s standard deduction to arrive at taxable income. The portion of taxable income that consists of net earned income is taxed at the regular rates for a single taxpayer. The portion of taxable income that consists of net unearned income and that exceeds the unearned income threshold ($2,100 for 2018; $2,200 for 2019 and 2020) is subject to the Kiddie Tax and is taxed at the parent(s)’ marginal federal income tax rate. That rate can be as high as 37% for ordinary income and short-term gains and 20% for long-term gains and dividends.
