Minor return

[JenMO]

Minor receives 1100 interest, owes $6, should i file? Owes nothing to state

[spanel]

Minor receives 1100 interest, owes $6, should i file? Owes nothing to state

Absolutely!! Owes $6 or $600, whats the difference?

Chris

[TAXNJ]

Minor receives 1100 interest, owes $6, should i file? Owes nothing to state

Question for you is why not?

Read the 1040 instruction line 78

[taxmom34]

and, I think children are required to file if unearned income is over $1050 this year.

[JenMO]

ok, when does the provision come into effect when the child's income is taxed at the parent's rate?

[FEDUKE404]

Kiddie tax

ok, when does the provision come into effect when the child's income is taxed at the parent's rate?

If all else fails. . . .

https://www.irs.gov/instructions/i8615/ch01.html#d0e38

FE

[TAXNJ]

ok, when does the provision come into effect when the child's income is taxed at the parent's rate?

Do you have THE TAXBOOK? If so, see Tab 12 (also other Tabs) It covers and answers your question well.

Also, the IRS website has a great "search" feature

[Roland Slugg]

Should i file?

I assume you mean, "Should that minor child file?"

Of course. The filing requirement is not waived if someone's tax liability is very low. Do you really need to ask such a question?

As others have pointed out above, the "kiddee tax" may apply in this case.

[Rapid Robert]

I assume you mean, "Should that minor child file?"

Thank you for that much needed clarification, many preparers seem to forget whose tax return is being filed.

The taxpayer could file, but also choose not to send in any payment -- that's not my concern or responsibility. I would inform them of potential failure to pay penalties, if asked, which are negligible in this case. While this would be setting an example of dishonesty for the minor child (if they are even old enough to understand the concept), it also would be an early lesson in how our voluntary tax system offers potentially huge rewards for being dishonest or not timely paying the taxes you owe -- namely, getting away with never paying the full amount required by law.

[TaxGuyBill]

Rather than the child filing a return, the parent does have the option to add it to their own return with Form 8814.

[Burke]

And I have done that. Result may be different, however, but only requires one return, not two.

[JenMO]

Thank for the last replies, very helpful

[Rapid Robert]

And I have done that. Result may be different, however, but only requires one return, not two.

I wonder how the preparer fee comes out in that case. A simple EZ return, or the child's investment income on parents return form? Does it ever come out better to combine the childs interest income on the parents return?

[Burke]

Yes. Sometimes the tax difference is pretty minor.