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| Subject: Re: Loss of Job | Date: 1/26/2006 2:36 PM | |
| Author: irasmilo | Number: 83044 of 118626 | |
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If the kid's below 14 you're dealing with the kiddie tax (tax at the parent's rate)anyway, except for the standard deduction of $700 and lower tax on the next $700. So it doesn't even matter if it's interest or dividends - the parent's rate will apply on the excess. Plus we'll charge for doing the kid's return. That makes it simpler for some parents, and saves us time. I've also seen all the income reported on the parent's return when the parents don't want to reveal their income to their children. The parents' taxable income must be reported on Form 8615 when the "kiddie tax" is calculated. Ira |
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