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RobertG
February 22, 2020

Why are you expecting a kiddie tax return in the mail?

 

You can compute the kiddie tax on your return or your child's return using TurboTax.

 

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.

 

  • If your child's only income is unearned and doesn't exceed $1,100, it doesn't need to be reported.
  • If your child's unearned income is $12,200 or more, he or she will need to file their own return.

Your child will also need to file if their unearned income is between $1,100 and $12,200, but in certain situations this income can be included on your return. Use TurboTax to help you figure out how to best report this income:

  1. Open or continue your return if you don't already have it open.
  2. Search for child income and select the Jump to link in the search results.
  3. Answer Yes to both Any Child's Income? and Child Required to File?
  4. Select Continue on the Reporting Your Child's Income screen.
  5. We'll ask you a series of questions to determine if the income can be included on your return or if your child needs to file their own return.

 

 

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