Is there a special tax calculation that has to be done for my child with investment income of over $1900 ?
Answer:
Yes. Children age 18 years or under with investment income of more than $1,900 must use Form 8615 to figure their income tax. Income over $2,000 is taxed at the parent's higher rates if applicable.
If certain criteria are met, the parents may elect to claim the child's income on their tax return using Form 8814.
Speak to your local CPA about the tax strategy of filing Form 8615 or Form 8814.
If certain criteria are met, the parents may elect to claim the child's income on their tax return using Form 8814.
Speak to your local CPA about the tax strategy of filing Form 8615 or Form 8814.
