2006512
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To know what to enter, the parents' tax return should be completed to get their Line 31 Form 540 or 540NR amount. The Line 10 Worksheet is just above Line 10 of Form 3800 in the TurboTax CD/Download. It would only apply for Nonresdients adn Part-Year Residents.
Line 10 will determine what tax rate to apply to the child's return because it may be subject to "Kiddie Tax."
Kiddie tax is the tax on a child's investment and other unearned income. Children will be taxed at parents' tax rate because when reporting more than $2,200 in unearned income. Keep in mind, any unemployment compensation received will be considered unearned income.
To see the state form, click 2020 Form 3800 Tax Computation for Certain Children with Unearned Income.
My son and I are both full year residents. Both use Standard deduction. My son was asked to fill out form 3800:
- Line 6 "Enter the parent's taxable income from form 540, line 19" but line 19 on my 540 form is Alimony Paid, not taxable income.
- Line 10 "Enter the parent's tax from form 540, line 31" but my 540 form doesn't have line 31.
What should I do?
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