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Form 8615 on the kids return is generating incorrect amount of tax. Help! PTO support doesn't understand?

kmyfinancial
Level 1
15 year old child has $7300 of unearned income. Included the income and tax from the parents 2023 return. Parents marginal rate is 35% and effective rate of 22.9%.  The childs return is showing 10% marginal and 66.2% effective. This is wrong.
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6 Replies 6
kmyfinancial
Level 1

* Correction: From the parents 2020 return.

 

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sjrcpa
Level 15

Work through the 8615 manually and see what is wrong. Good luck if there are qualified divs and capital gains - which may be part of the problem.


ex-AllStar
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TaxGuyBill
Level 14

The "effective" rate means nothing.  If you are looking at that, that is likely your mistake.

What is the actual AMOUNT of tax?

kmyfinancial
Level 1

Thanks for your response. The amount of tax is $4511 on taxable income of $6813 for the 15 year child's return. 

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TaxGuyBill
Level 14

@kmyfinancial wrote:

Thanks for your response. The amount of tax is $4511 on taxable income of $6813 for the 15 year child's return. 


LOL, okay, you are right, that is totally wrong (assuming that amount doesn't include any weird things like penalties or PTC repayment).   😂

As for what the problem is, unfortunately I'm not a PTO user so I can't really help you figure that out.  I hope you can figure it out soon, or perhaps somebody else will stop by with some ideas.

 

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sjrcpa
Level 15

I thought of that, but OP says 8615 is generating incorrect amount of tax.


ex-AllStar
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