Form 8615

smsprauer — Fri, 14 Feb 2025 22:13:33 GMT

I am attempting to do my daughter's taxes. She had 3900 or so in earned income and 2600 in unearned from an inherited ira as well as another 63 from bank interest. Her tax owed was around 210 before I started entering the 2600 in inherited IRA money. My understanding is that of the 2663 (2600 + 63) that the first 2600 is not taxed. I may be wrong.

She owed 216 BEFORE I started entering the 2600 at which point her tax due went up by over $500!! That seems crazy. $500 for a $63 unearned income. I filled out the necessary information from my joint taxes on line 6 of 8615 and, added to that on line 8, my joint numbers plus $63 of her unearned interest. Still didn't understand the extra $500. I did see that the taxes calculated on the form 8615 did not take into consideration the taxes calculated on the Qualified Dividends and Capital Gain Worksheet. They are quite different. I do notice that line 10 on 8615 allows me to checkmark that my taxes were determined by the Qualified Dividends and Capital Gain Worksheet, which they were. However, Turbotax will NOT allow me to click that box. Why is that? I'm hoping by clicking that box it will fix this outrageous $500 issue. Anyone? thoughts?

Re: Form 8615

smsprauer — Sat, 15 Feb 2025 15:25:48 GMT

I figured it out for anyone who has similar issue. I had to enter my qualified dividends on line 8 worksheet on daughter's form 8615. Once that was done the checkboxes on both lines 9 and 10 automatically checked and the tax was properly calculated on the $63 in unearned income above the 2600 threshold.

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Form 8615

Re: Form 8615