Discussion:Child w-2 & investment income
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Discussion Forum Index --> Basic Tax Questions --> Child w-2 & investment income
Discussion Forum Index --> Tax Questions --> Child w-2 & investment income
| 2 April 2008 | |
| I prepared a 1040 for my client. I was asked to prepare his 15 year old son's return. He worked one job and only made $592.
The son also has investment income. Once I include the investment income, he owes. I am not sure if I need to include the investment income in the tax return. I thought maybe the kiddie tax rules would somehow allow this income to be excluded. Do I have a choice whether to file without including the investment income????? Thanks. | |
Taxestaxes (talk|edits) said: | 2 April 2008 |
| IRC Sec 63(c)(5). | |
| 3 April 2008 | |
| Thanks but I am still not clear on how to handle this. Can you please comment further? | |
| 3 April 2008 | |
| Yes, you must add investment income in.
If investment income is over $1800, then the youngster's income will be taxed at the parent's tax rate via the kiddie tax form | |
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