Kidde Tax

[zeros]

My client has two children on her return. Each of the children have about $2500 in interest earnings. The children have w-2's so they will be filing returns also. Is the interest added on to the mother's 1040? Or figure out the kidde tax on the children's returns? How do you do it?

[Larmil]

My opinion only -

My client has two children on her return. Each of the children have about $2500 in interest earnings. The children have w-2's so they will be filing returns also. Is the interest added on to the mother's 1040? Or figure out the kidde tax on the children's returns? How do you do it?

I would check it both ways. Every state is different so you would have to look at both Fed & State.

[JCH]

You'll need to file Form 8615 with each kid's return. If they each had just interest income, you could file an 8814 for each on the parent's return. However, because they had W-2 earnings in addition to the investment income, they'll each need to file a return with an 8615.

[Larmil]

You'll need to file Form 8615 with each kid's return. If they each had just interest income, you could file an 8814 for each on the parent's return. However, because they had W-2 earnings in addition to the investment income, they'll each need to file a return with an 8615.

Sorry, brain dead - didn't see W-2.