turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

NO TAX DUE?

Filing a 1040 for a dependent child with unearned income of $1600, less standard deduction of $1350 results in taxable income of $250. Yet, Turbo tax says Federal tax liability is "0".  Since $250 of taxable income is subject to 10% tax rate, why is turbo tax not showing a tax liability of $25?? Any help would be appreciated. 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

NO TAX DUE?

If the unearned income is qualified dividends or capital gains it would not be taxed at their income level. 

NO TAX DUE?

Thank you.  With the exception of about $400, non qualified dividends, the remaining $1200 is capital gains and qualified dividends.  I trust since the majority is cap gain and qual div, the result is no tax liability. Appreciate your prompt response.

 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question