Originally posted by arlo
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Last edited by Rapid Robert; 07-27-2018, 04:36 PM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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Originally posted by FEDUKE404A -- Dependent makes $6,000 from a summer job. No other income. What is the standard deduction?
B -- Dependent makes $6,000 from a summer job and has qualified dividend income, from stocks gifted from a doting grandparent, in the amount of $6,000. What is the standard deduction?
C -- Dependent spent most of the summer at the beach and had only $1,000 of wage income. Dividend income, same source as above, in the amount of $6,000. What is the standard deduction?
B - $6,350
C - $1,350
Now for C, maybe it would be more illustrative if you had used $500 of wage income, in which case the answer would be, $1,050.
Also note that kiddie tax on unearned income is now calculated more simply, using trust tax brackets instead of parent's tax brackets. More simply may also mean higher, however.
Finally, while you mention "2018 for a dependent who is being claimed as such on the parental tax return", it doesn't matter whether the parents "claim" the child or not. The meaning of "claim" is now somewhat different, I suppose it can mean either using the dependent to support a certain filing status (HoH, QW), or using the dependent for a child/family credit.Last edited by Rapid Robert; 07-28-2018, 01:02 PM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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Hiring your children
Originally posted by FEDUKE404UNCLE!! UNCLE!!
Let's just say a person of young age "who is a factor on the parent's tax return."
In olden days, the pertinent question was whether an individual could "qualify" as a dependent of another person.
Oh yes, in days of yore you could have a "youthful person" who qualified an adult to use HOH, but the adult might not be able to claim the dependency exemption.
And on the flip side, in the same days of antiquity, you could have a situation where a "youthful person" was rightfully claimed as a dependent by the adult, but the adult was precluded from filing HOH.
This horse has now been fully pulverized.
At least we can now, perhaps, agree that every "single" individual does **NOT** automatically get a $12,000 standard deduction for 2018??
Of course, as is often noted, I ain't none too bright in overall tax knowledge.
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Originally posted by arlo View PostThanks gentlemen for your threads but I am talking about 2018 earned income by a dependent child. I want to know the formula used to calculate the tax if it has been released.Believe nothing you have not personally researched and verified.
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Originally posted by taxea View Post2018 tax issues have not been finalized. Are you asking for withholding purposes? If so, no matter the age, a single taxpayer should file a single-0 W-4. If for any other reason then research irs.gov"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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It's called tax planning
Originally posted by taxea View Post2018 tax issues have not been finalized. Are you asking for withholding purposes? If so, no matter the age, a single taxpayer should file a single-0 W-4. If for any other reason then research irs.gov
My clients love me when I have such advice for them.
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