How do I report and pay the Kiddie Tax?
The Kiddie Tax can be reported on your child's return (or yours, if certain conditions are met – these are discussed at the bottom). The Kiddie Tax will work out the same either way.
However, reporting your child's income on your return will not only increase your taxable income, it can phase out certain deductions and credits that you'd otherwise be eligible for.
For this reason, most people will file a separate return for their child to report this tax. When asked for the parent's info on your child's return, enter the name and Social Security number that appears first on the parents' joint return (i.e., the primary taxpayer).
- If the parent(s) are filing separately or were never married, use the info of the parent with the highest taxable income.
- For divorced parents, use the custodial parent's info.
On the other hand, if you want to include your child's income on your return, you can only do so if:
- Your child was under age 19 (24 if a full-time student) at the end of 2016;
- Your child's only income came from interest and dividends, including capital gains distributions and Alaska Permanent Fund dividends;
- Your child's 2016 gross income was less than $10,500;
- Your child is required to file a return;
- Your child is not filing a joint return for 2016;
- No 2016 estimated tax payments were made for your child (including 2015 overpayments applied to 2016 estimated tax); and
- No federal taxes were withheld from your child's income. All these conditions must apply.
To report your child's income on your return, simply follow these instructions and we'll apply the Kiddie Tax calculations.