Form 8615 Line 4 (Kiddie Tax)

[Michael16]

My dependent child has unearned income above $2600 and I will need to File a Form 8615 for their taxes.

Let's say their unearned income is all interest income of $5,000. For Line 4 of Form 8615, I'm asked to provide their taxable income from their Form 1040, Line 15. I assume that number considers their standard deduction of $1,350? So in this example, their taxable income from Form 1040, Line 15 would be $3,650 ($5,000-$1,350)?

It seems this extra $1,300 is tacked on at the end of Form 8615 (Line 14) and then taxed at the child's rate (10%). Am I understanding this correctly?

[rjs]

It sounds like you're trying to fill out the forms yourself by hand. If you use TurboTax to prepare your child's tax return TurboTax will do all the calculations for you. It's much easier, and less error-prone. TurboTax will fill out Form 8615 correctly for you.

[Michael16]

This is related to tax planning I'm doing so it's important I understand how the tax is computed. Once I file, I will use the tax software.

[rjs · Accepted solution]

Everything you said in your original question is correct (but Form 8615 line 14 is $1,350, not $1,300).