Questions about 8615

Mar 29, 2008 2 Replies
T

I have two children, one 20 and one 14. Taxcut says I have to complete a 8615 on my 14 yo's return.


1) It tells me to enter information about my other children. Do I enter info on my 20 year old, eventhough he doesn't have a 8615?
2) I am having an accountant prepare my return, but he has made some errors so I won't have a final return for a while. If I use the preliminary figures they will give the right result on my son's return, but won't match my return. I would like to get this out of the way while I have the time, but should I wait to avoid confusing the IRS?
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T

I played around a bit with the 8615 on TaxCut. Apparently since my income is W2 and capital gains, and my son's is capital gains only, my tax rate is higher than his. He is taxed at my rate. Is that how it works? Since even small changes in my tax return effect my tax rate, I have to wait for the final form before doing his. Right?

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T

Exactly. That is the entire purpose of the so-called "Kiddie Tax" rule. Your son's long-term capital gain income will, at least, still qualify for the reduced long-term capital gains rate.

Yes. The parents return has to be complete and in final form before you can do the child's return.

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