Hal_Al
Level 15

Education

Q. My dependent son has a taxable unearned income of $4830 and TT says he owes over $1,000 in federal taxes. Does this sound right?

A. Yes.  That appears to be 37% tax rate, the highest federal bracket.

 

Q. Is this because of the kiddie tax?

A. Yes. Everything over $2600 is taxed at the parents marginal rate.