The IRS has not finalized Form 8615. To see the status of Form 8615, click here.
Form 8615 Form 8615 is the form to report Tax for Certain Children Who Have Unearned Income. The 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.
To generate Form 8615 once the IRS finalizes it, see How do I report my child's investment income in 2019?
I am trying to file my sons return and we are filing Form 8615. We are getting an error message that says:
Wont be able to E-file your return. A form or tax situation, turbo tax doesnt support E-filing. You indicated on form 8615 you are electing to modify tax of unearned income.
I dont want to mail in his return. What do we do?
Thanks
This article was very helpful; however, it is a shame that the IRS now inlcudes unemployment compensation as part of the requirement to tax the child/young adult at their parent's higher tax rate. Because our young adult son was fuloghed for 8 weeks and collected unemployment during that time, any amount over $2200 is is taxed at our (his parent's) higher tax rate.
I was wondering if 'unemployment' compensation was added for 2020?
No. The unemployment compensation treatment for a dependent has not changed in 2020. The amount of the standard deduction on a dependent's return is as follows:
Dependents – If you can be claimed as a dependent by another taxpayer, your standard deduction for 2020 is limited to the greater of:
(1) $1,100, or
(2) your earned income plus $350 (but the total can't be more than the basic standard deduction for your filing status).
Your adult son can use his earned wages as his standard deduction, up to $12,400. Unemployment compensation is not considered earned income so anything over the standard deduction will be taxed at the parents rate.