The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/if-the-kids-below-14-youre-dealing-with-the-23613735.aspx

Subject:  Re: Loss of Job Date:  1/26/2006  2:36 PM
Author:  irasmilo Number:  83044 of 121095

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

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us