Some of you may know that I have been trying to get an answer from the IRS for about a year regarding whose parent to use when a majority age child is subject to the Kiddie Tax and the parents are divorced. After getting the run around several times, I changed my question to remove the chance of them telling me to count nights or something like that.
Anyone want to interpret this latest response?
I highlighted my question and their answer.
Anyone want to interpret this latest response?
I highlighted my question and their answer.
NOTE: Thank you for your inquiry. Our response to your tax law question appears below. I hope this information has been helpful. If you have a follow-up question or another general tax law question, please return to our web site at: www.irs.gov.
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Your Question Was:
This is a Kiddie Tax Question for 2008 returns. If a woman, age 22 is living with and being fully supported by her boyfriend in his home during the entire year and attending school as a full time student, but has $2,000 worth of investment income, she is subject to the Kiddie Tax for 2008. If the parents are divorced, which parent s return should be used?
The Answer To Your Question Is:
Dear Taxpayer,
Thank you for your inquiry. I apologize for the delayed response. The following information is in Publication 929 entitled “Tax Rules for Children and Dependents” and the instructions for the Form 8814. You may access these references directly from our web site at www.irs.gov.
I understand your question is regarding the parental election to report a child’s investment income using the Form 8814. I am assuming the Form 8615 will not be used because this form would be attached to the child’s return, not the parent’s return, and you specifically ask which parent’s return should be used to make this election.
The following is some of the pertinent information found in Publication 929. “If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent.”
The following is some of the pertinent information found in the instructions for the 2008 Form 8814. “Parents qualify to make this election if they file Form 1040 or Form 1040NR and any of the following apply:
You are filing a joint return for 2008 with the child’s other parent.
You and the child’s other parent were married to each other but file separate returns for 2008 and you had the higher taxable income.
You were unmarried, treated as unmarried for federal income tax purposes, or separated from the child’s other parent by a divorce or separate maintenance decree. The child must have lived with you for most of the year (you were the custodial parent). If you were the custodial parent and you remarried, you can make the election on a joint return with your new spouse. But if you and your new spouse do not file a joint return, you qualify to make the election only if you had higher taxable income than your new spouse.”
In summary; based on the facts and circumstances provided in your inquiry and the assumption that a parental election will be made; the custodial parent’s return would be used to determine the “Kiddie Tax” for tax year 2008. The Form 8814 would be attached to the custodial parent’s return.
We hope this information answers your question. Thank you for using our e-mail service. Should you need any further assistance, you may call customer service at 1-800-829-1040.
IRS forms and publications may be accessed on our web site at the following address: www.irs.gov or ordered through our toll-free forms line at: 800-829-3676
Expect delivery within 10 business days.
Other useful toll-free numbers include:
800-829-1040 IRS Tax Help Line for Individuals
800-829-4933 Business and Specialty Tax Help Line
800-829-1954 Refund Hotline
866-562-5227 Disaster Relief Toll-Free Number, Monday
through Friday, 7 am to 10:00 pm local time
We are interested in your opinion and providing the best possible service to you. Please take a moment to answer our survey at: www.irs.gov/help
This answer is based on our understanding of the facts you presented in your question. Omission of facts may affect the answer given.
Here's a tip for navigating the IRS web site. Use the "search" button at the right side of the web page. Enter key words or phrases for your topic in the entry box.
For security reasons and to protect taxpayer privacy, the IRS does not address taxpayer account-related issues for which personal, identifying information would be needed through e-mail.
Our basic Electronic Tax Law Assistance service is designed to assist the general public in complying with their Federal tax obligations by helping them with questions they have about the tax law and procedural issues. Our goal is to provide complete and accurate responses to as many taxpayers as possible.
If you have additional questions, you may contact us either by phone at 1-800-829-1040 or by email through our web site www.irs.gov.
EMPLOYEE ID: 99-99999 Mx. Xxxxxxxx Tel.: (800) 829-1040 msg#: 1788161
Please do not use your "reply" button to respond to this message. More helpful information is provided at the end of this message.
Your Question Was:
This is a Kiddie Tax Question for 2008 returns. If a woman, age 22 is living with and being fully supported by her boyfriend in his home during the entire year and attending school as a full time student, but has $2,000 worth of investment income, she is subject to the Kiddie Tax for 2008. If the parents are divorced, which parent s return should be used?
The Answer To Your Question Is:
Dear Taxpayer,
Thank you for your inquiry. I apologize for the delayed response. The following information is in Publication 929 entitled “Tax Rules for Children and Dependents” and the instructions for the Form 8814. You may access these references directly from our web site at www.irs.gov.
I understand your question is regarding the parental election to report a child’s investment income using the Form 8814. I am assuming the Form 8615 will not be used because this form would be attached to the child’s return, not the parent’s return, and you specifically ask which parent’s return should be used to make this election.
The following is some of the pertinent information found in Publication 929. “If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent.”
The following is some of the pertinent information found in the instructions for the 2008 Form 8814. “Parents qualify to make this election if they file Form 1040 or Form 1040NR and any of the following apply:
You are filing a joint return for 2008 with the child’s other parent.
You and the child’s other parent were married to each other but file separate returns for 2008 and you had the higher taxable income.
You were unmarried, treated as unmarried for federal income tax purposes, or separated from the child’s other parent by a divorce or separate maintenance decree. The child must have lived with you for most of the year (you were the custodial parent). If you were the custodial parent and you remarried, you can make the election on a joint return with your new spouse. But if you and your new spouse do not file a joint return, you qualify to make the election only if you had higher taxable income than your new spouse.”
In summary; based on the facts and circumstances provided in your inquiry and the assumption that a parental election will be made; the custodial parent’s return would be used to determine the “Kiddie Tax” for tax year 2008. The Form 8814 would be attached to the custodial parent’s return.
We hope this information answers your question. Thank you for using our e-mail service. Should you need any further assistance, you may call customer service at 1-800-829-1040.
IRS forms and publications may be accessed on our web site at the following address: www.irs.gov or ordered through our toll-free forms line at: 800-829-3676
Expect delivery within 10 business days.
Other useful toll-free numbers include:
800-829-1040 IRS Tax Help Line for Individuals
800-829-4933 Business and Specialty Tax Help Line
800-829-1954 Refund Hotline
866-562-5227 Disaster Relief Toll-Free Number, Monday
through Friday, 7 am to 10:00 pm local time
We are interested in your opinion and providing the best possible service to you. Please take a moment to answer our survey at: www.irs.gov/help
This answer is based on our understanding of the facts you presented in your question. Omission of facts may affect the answer given.
Here's a tip for navigating the IRS web site. Use the "search" button at the right side of the web page. Enter key words or phrases for your topic in the entry box.
For security reasons and to protect taxpayer privacy, the IRS does not address taxpayer account-related issues for which personal, identifying information would be needed through e-mail.
Our basic Electronic Tax Law Assistance service is designed to assist the general public in complying with their Federal tax obligations by helping them with questions they have about the tax law and procedural issues. Our goal is to provide complete and accurate responses to as many taxpayers as possible.
If you have additional questions, you may contact us either by phone at 1-800-829-1040 or by email through our web site www.irs.gov.
EMPLOYEE ID: 99-99999 Mx. Xxxxxxxx Tel.: (800) 829-1040 msg#: 1788161
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