Question

How do I file for my child if earned $1200 through an investment account

Forum|Forum|4 years ago
April 10, 2022
3 replies
0 views

He is 4 years old, so he is unable to do this himself.

TurboTax Premier Online

Employee

File for the child since unearned income was more than $1100. Be sure to check the box saying that someone else can claim him.

ColeenD3

If he had capital gains, he will need to file his own return and may have to file Form 8615. Just enter the information the same way you do your own return, except you will enter his name, date of birth, and social security number.

For tax year 2021, the Kiddie Tax applies if your child has unearned income (usually from investments) exceeding $2,200.

Form 8615 must be filed for any child who meets all of the following conditions.

The child had more than $2,200 of unearned income.
The child is required to file a tax return.
The child either:

17 or younger at the end of 2021
18 at the end of 2021, but only if their earned income (excluding scholarships in the case of a full-time student) didn’t exceed half of their support costs in 2021.
Was a full-time student at least age 19 and under age 24 at the end of 2021 and didn’t have earned income that was more than half of the child's support.
(Unearned income and support are defined below.
At least one of the child's parents was alive at the end of 2021.
The child doesn’t file a joint return for 2021.

For these rules, the term “child” includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent. These rules don’t apply if neither of the child’s parents was living at the end of the year.

A

abarclay03Author

I’m confused. The dollar amount of $2200 is different than the previous info I got. What TurboTax indicates is the unearned income needs to exceed $1,150. Is this incorrect?

DoninGA

Employee

You can enter the child's unearned income on your tax return using Form 8814

Type form 8814 and Enter in the Search box located in the upper right of the program screen. Click on Jump to form 8814

ColeenD3

Use Form 8814 in the following circumstances.

Purpose of Form

Use this form if you elect to report your child’s income on your return. If you do, your child will not have to file a return. You can make this election if your child meets all of the following conditions.

• The child was under age 19 (or under age 24 if a full-time student) at the end of 2021. “Student” is defined below. • The child’s only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.

• The child’s gross income for 2021 was less than $11,000.

• The child is required to file a 2021 return.

• The child does not file a joint return for 2021.

• There were no estimated tax payments for the child for 2021 (including any overpayment of tax from his or her 2020 return applied to 2021 estimated tax).

• There was no federal income tax withheld from the child’s income. You must also qualify.

The child must file a return if the income is over $1,100. Form 8615 is filed if income is over $2,200.