Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
yanam
Returning Member

Form 8615 Kiddie Tax

Can you please help with this form. Full time student 22 with unemployement income only will have to file, during filing asked to compleate form 8615, howere parent will not file taxes and don't have any informtion that requested on that form. Parent's income is only SSD. No other dividents or trusts. Can we skip this form or we must to complet and how? Thank you. 

3 Replies
ColeenD3
Employee Tax Expert

Form 8615 Kiddie Tax

If your parents had no income, then say so. You are required to file the form if you meet the qualifications.

 

Form 8615 must be filed for any child who meets all of the following conditions.

  1. The child had more than $2,200 of unearned income.
  2. The child is required to file a tax return.
  3. The child either:
  1. Was under age 18 at the end of 2020,
  2. Was age 18 at the end of 2020 and didn’t have earned income that was more than half of the child's support, or
  3. Was a full-time student at least age 19 and under age 24 at the end of 2020 and didn’t have earned income that was more than half of the child's support.
    (Earned income is defined later. Support is defined below.)
  1. At least one of the child's parents was alive at the end of 2020.
  2. The child doesn’t file a joint return for 2020.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
yanam
Returning Member

Form 8615 Kiddie Tax

thank you @ColeenD3 .  I would love to do that. but it doesnt give me that option, thats why i turnes to you for expert advise. options only if parents filing 1040. this extra $50 not going to make any difference in my life but i will make my mom's life more comlicated to asked her to file. Deleting a form is not an option it's keep coming back as I am a student. 

 

DawnC
Employee Tax Expert

Form 8615 Kiddie Tax

Your mom does not have to file a tax return.   If she doesn't have taxable income, enter 0 when you are asked.  When filing the form, you must provide the child's name and Social Security Number (SSN) and the name and Social Security Number of a parent, as well as which filing status the parent is using, such as single, joint or married filing separately. The form has three parts:

  • Part I identifies the child's unearned income and how much of it is subject to the kiddie tax
  • Part II calculates the kiddie tax

Typically, children are placed in a lower tax bracket than their parents and the reason for this is quite simple: most children don't have that much income, and those that do, rarely earn more than their parents. Some parents have attempted to take advantage of this by putting investments in their children's names, hoping that any investment profits would be taxed at the child's lower rate. In response, the federal government changed the tax treatment of children's unearned income by taxing it at the parent's tax rate. Form 8615 is used to make the child's tax calculations for this income.  What is IRS Form 8615: Tax for Certain Children Who Have Unearned Income

 

In general, in 2020 the first $1,100 worth of a child's unearned income is tax-free. The next $1,100 is taxed at the child's income tax rate for 2020. Anything above $2,200, however, is taxed at the rate that applies to trusts and estates, which usually is higher than the child's rate. This tax treatment has gained a nickname: the "kiddie tax." Calculating how much tax applies to the child's income is the purpose of Form 8615.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v