Not calculating kiddie tax property. for the interest income between $1350 to $2700 the tax should be 10% but its canulating at my parents rate !! Any clue ?

[parekhalpa07]

I am 18 years old and have $15000 of income from 1099-INT. I am being claimed as a dependent by my parents.

[MarilynG1]

Assuming you have no earned income (wages), the interest is taxed in three distinct tiers: 

• Tier 1: Tax-Free Portion ($0 – $1,350)
  • The first $1,350 is covered by the dependent's standard deduction for unearned income.
  • Tax: $0
• Tier 2: Child’s Tax Rate ($1,350 – $2,700)
  • The next $1,350 is taxed at the child's individual marginal tax rate, which is typically 10%.
  • Tax: ~$135
• Tier 3: Parents’ Tax Rate ($2,700 – $15,000)
  • The remaining $12,300 is taxed at the parents' highest marginal tax rate.
  • For example, if the parents are in the 24% tax bracket, this portion would incur approximately $2,952 in tax

In this example, total tax would be $3,087.  If your form 8615 is not computing appropriately, you could Delete it and step through your 1099-INT entry again.  Be sure you indicated you are being claimed as a Dependent in the Personal Info section.  Here's more info on Form 8615.

@parekhalpa07 

[parekhalpa07]

Unfortunately, that didnot work. I have filed the tax for now.  😐