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posted Jun 3, 2019 12:41:00 PM

Kid: $3300 earned inc, $6,900 cap gains, $100 int/div. Other years TT required entry of values from parent return. Did the rules change, TT not requesting info this year?

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1 Best answer
Expert Alumni
Jun 3, 2019 12:41:03 PM

They did change, yes.  Rather than your Child being taxed at your tax rates, the "Kiddie Tax" is now taxed at Estates and Trusts tax rates.  These rates are set rates for everyone, although they are also higher.  But because these set rates are used, the parents' income figures are not needed on the tax return (although the primary SSN from the Parents' return where the child is claimed still is required).

These were a part of the changes made by the Tax Cuts and Jobs Act.  For more information, please see this FAQ, (open the entire FAQ and click on the link Kiddie Taxhttps://ttlc.intuit.com/replies/6971774 

2 Replies
Level 15
Jun 3, 2019 12:41:02 PM
Expert Alumni
Jun 3, 2019 12:41:03 PM

They did change, yes.  Rather than your Child being taxed at your tax rates, the "Kiddie Tax" is now taxed at Estates and Trusts tax rates.  These rates are set rates for everyone, although they are also higher.  But because these set rates are used, the parents' income figures are not needed on the tax return (although the primary SSN from the Parents' return where the child is claimed still is required).

These were a part of the changes made by the Tax Cuts and Jobs Act.  For more information, please see this FAQ, (open the entire FAQ and click on the link Kiddie Taxhttps://ttlc.intuit.com/replies/6971774