Kiddie Tax vs. Inclusion in Parents Return

[grandpaalb]

Parents have $175,000 taxable income. Child(18) in college has about $8,000 in taxable income, all of which is LT Capital Gains at 0%. On his own he would have no tax liability. Using Form 8615 & his parents effective rate, he would owe about $1,000. Would appreciate opinion on most taxpayer effective way to report-Kiddie Tax or inclusion in Parents?

[Gary2]

Parents have $175,000 taxable income. Child(18) in college has about $8,000 in taxable income, all of which is LT Capital Gains at 0%. On his own he would have no tax liability. Using Form 8615 & his parents effective rate, he would owe about $1,000. Would appreciate opinion on most taxpayer effective way to report-Kiddie Tax or inclusion in Parents?

You can't report general capital gains on the parents' return (just 1099-INT, -OID, and -DIV). So unless you meant 8K in qualified dividends or capital gain distributions on a 1099-DIV, you don't have a choice. It has to go on the child's return, using the 8615.