Get 8615

A child can avoid the kiddie tax rules when the age, income, or support test (if applicable) is not met during the tax year. Reducing or eliminating a child's investment income by shifting to tax-free investments can minimize the impact of the kiddie tax or allow a child to avoid the kiddie tax rules.

For 2022, Form 8615 needs to be filed if all of the following conditions apply: The child has more than $2,300 in unearned income. The child is required to file a tax return. The child does not file a joint tax return with a spouse.

Form 8615 is only required if you have a child under the age of 19 (or under the age of 24 and a full-time student), and has unearned income of $2,200 or more. Verify that there is not incorrect data in your tax return that is causing Form 8615 to be generated after you have deleted the form.

For children under age 18 and certain older children described below in Who Must File, unearned income over $2,300 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,300, use Form 8615 to figure the child's tax.

The tax applies to dependent children under the age of 18 at the end of the tax year (or full-time students younger than 24) and works like this: The first $1,150 of unearned income is covered by the kiddie tax's standard deduction, so it isn't taxed. The next $1,150 is taxed at the child's marginal tax rate.

Form 8615 must be filed with the child's tax return if any of the following apply: You had more than $2,300 of unearned income. You are required to file a tax return.

For children under age 18 and certain older children described below in Who Must File, unearned income over $2,300 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,300, use Form 8615 to figure the child's tax.

The tax applies to dependent children under the age of 18 at the end of the tax year (or full-time students younger than 24) and works like this: The first $1,150 of unearned income is covered by the kiddie tax's standard deduction, so it isn't taxed. The next $1,150 is taxed at the child's marginal tax rate.

If you are required to file Form 8615, you can't delete it. Use Form 8615, Tax for Certain Children Who Have Unearned Income (PDF) to figure your tax on unearned income over $2,200 if you're under age 18, and in certain situations if you're older (see below).