Depending on the amount of income, you may be able to report it on your return. The Kiddie Tax is reported on your child's return (or yours, if specific conditions listed below are met).When choosing to report it on your child's return, we'll need info from one of the parents: For jointly-filing parents, enter the parent that appears first on the joint return. For separately-filing or unmarried parents, enter the parent with the highest taxable income. For divorced parents, enter the custodial parent.Under what conditions can I include my child's income on my return?All these conditions must be met: Your child was under age 19 (24 if a full-time student) as of January 1, 2020;* Your child's income was solely from interest and dividends (including capital gains distributions and Alaska Permanent Fund dividends) and is less than $10,500; Your child is required to file (that is, their income exceeded $1,100); Your child is not filing a joint 2019 return; No 2019 estimated tax payments were made for your child (including 2018 overpayments applied to 2019 estimated tax) No federal taxes were withheld from your child's income; and You're either filing a joint return with your child's other parent or you're the parent who is qualified to include your child's income on your return (for example, you're the custodial parent or you and your spouse are filing separately and you have the higher taxable income).To report your child's income on your return, simply follow these instructions and we'll apply the Kiddie Tax calculations. Related Information: What is the 2019 Kiddie Tax? Do I need to file my own taxes if I'm a dependent? How do I report my child's investment income in 2019?

Question

Olivia is 16 and has UTMA income. How is this handled on turbotax with parent’s tax rate?

Forum|Forum|6 years ago
May 1, 2020
2 replies
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DawnC

Employee

Depending on the amount of income, you may be able to report it on your return.

The Kiddie Tax is reported on your child's return (or yours, if specific conditions listed below are met).

When choosing to report it on your child's return, we'll need info from one of the parents:

For jointly-filing parents, enter the parent that appears first on the joint return.
For separately-filing or unmarried parents, enter the parent with the highest taxable income.
For divorced parents, enter the custodial parent.

Under what conditions can I include my child's income on my return?

All these conditions must be met:

Your child was under age 19 (24 if a full-time student) as of January 1, 2020;*
Your child's income was solely from interest and dividends (including capital gains distributions and Alaska Permanent Fund dividends) and is less than $10,500;
Your child is required to file (that is, their income exceeded $1,100);
Your child is not filing a joint 2019 return;
No 2019 estimated tax payments were made for your child (including 2018 overpayments applied to 2019 estimated tax)
No federal taxes were withheld from your child's income; and
You're either filing a joint return with your child's other parent or you're the parent who is qualified to include your child's income on your return (for example, you're the custodial parent or you and your spouse are filing separately and you have the higher taxable income).

To report your child's income on your return, simply follow these instructions and we'll apply the Kiddie Tax calculations.

Related Information:

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Hal_Al

Employee

It depends on the amount and the type of income. If her UTMA income is less than $1100, and that is her only income, it does not need to be reported at all.

If her only income is from interest and dividends , Alaska PFD or capital gains distributions shown on a 1099-DIV (and less than $11,000), there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.

Otherwise, she'll need to file her own return and file form 8615.

TurboTax can handle the complicated calculation, either way.

________________________________________________________________________

TurboTax also has another free product called the Free File Edition (not to be confused with the regular Free Edition). It has free Federal preparation and free State preparation. There is no efiling fee. It is not available after October 15

The Free file Edition can handle form 8615

The Free file Edition is more fully-featured than the regular Free Edition. The Free File Edition can prepare Schedule A, C, D, E, and F that the Free Edition cannot.

For Free File Edition a user needs to meet only ONE of these qualifications:

AGI of $36,000 or less
or active duty military (including Reservists and National Guard) with a military-issued W-2 and a 2019 AGI of $69,000 or less
or eligible for the Earned Income Credit (EIC aka EITC).

The FREE FILE Edition is located at:
https://turbotax.intuit.com/taxfreedom

How to switch and start over in Free file Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition