My daughter who is 12yr old has collected Social Security and Pension from my husband/her dad who passed away.
She received Social Security of $10608, Police Pension of $8078 and received interests totalling $1100
On her individual tax return
1. 1099R shows box 1 Gross Distribution $8078 and Box 2a Taxable Amount of $8078; Box 4 Federal W/H of $400 which is showing taxable income on line 5b
2. Interest $1102 showing up on line 2b
3. Social Security line 6a. $10608 but line 6b. Shows Zero taxable amount
My question is the taxable pension that appears on line 5b ($8078), taxable interest on line 2b ($1102) is all considered unearned for my daughter and will appear on Line 1 on Form 8615 correct in the amount of $9180?
And I want make sure I do not have to include any portion of her Social Security because none of it was considered taxable income because line 6b was zero - that is correct?
And then I will have to enter my income information on Part II to determine the kiddie tax correct?
Thank you in advance.
