ZERO % Capital Gain Rate for a dependent

[Kram BergGold]

My client is a 20 year old college student with $1200 of capital gains and qualifying dividends. His taxable income is $300. My software says his tax is zero. This leads me to believe that the zero percent rate on cap gains and qual divs is available for students over 18 whose income is under $1800. Anyone disagree?

[DonPriebe]

My client is a 20 year old college student with $1200 of capital gains and qualifying dividends. His taxable income is $300. My software says his tax is zero. This leads me to believe that the zero percent rate on cap gains and qual divs is available for students over 18 whose income is under $1800. Anyone disagree?

The 0% capital gain rate is available to anyone to the extent that it would otherwise be taxed in the 15% bracket or below.

[Kram BergGold]

Kiddie Tax

The zero % bracket is not available to a child paying Kiddie tax. My question is, does a child with cap gains but not enough to pay Kiddie tax get the zero % rate? My software says yes but I was not aware that the law was going to work like that.

[BP.]

question is, does a child with cap gains but not enough to pay Kiddie tax get the zero % rate?

TTB 12-10 --- Chart lower left confirms 0% rate for income type & level you describe.

[Kram BergGold]

Thanks

Thanks for confirming. I don't think any of the presenters at the two or three seminars I went to on this subject mentioned this.