How do I do my child's taxes.
My son has $3000 in wages and $1950 in long-term capital gain. Total=$4950. His standard deduction would be $3350; zero exemptions; leaving a taxable income of $1600. As I understand it, the 1st $1000 is taxable at the child's rate, in this case zero. The remaining $600 is taxed at my rate of 15% for a total tax of $90. How/where is this tax computed? Form 8615 (line 5) and Publication 929 (Page 13) says not to use form 8615 if unearned income is less than $2000.