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Kiddie Tax

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Level 1

I am using ProSeries Basic and have a 16 year old client with $4300 of unearned capital gain income and no other income.  I believe that they should be subject to the Kiddie Tax but the program is not calculating any tax due.  Am I doing something wrong?

 

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Level 11
Level 11

Yes, they are subject to the kiddie tax. The program is correct, they owe no tax on $4300 of capital gain income. Here is the link for instructions, and if you fill out the worksheets you will see why.

https://www.irs.gov/pub/irs-prior/i8615--2019.pdf

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Level 11
Level 11

Yes, they are subject to the kiddie tax. The program is correct, they owe no tax on $4300 of capital gain income. Here is the link for instructions, and if you fill out the worksheets you will see why.

https://www.irs.gov/pub/irs-prior/i8615--2019.pdf

View solution in original post