Has anyone done the Kiddie tax return. I have a client's child 16 years and has unearned income of $1314 from dividend and capital gains. Do I file a tax return for the child or just report on parents tax return. I have never done it before so any guidance will be helpful. Thanks
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Either way has pros and cons: https://www.irs.gov/taxtopics/tc553 -
So what I am understanding is that it is one or the other meaning Kids tax return or Parents tax, is it correct?Comment
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Correct, if the unearned income is ONLY interest, dividends, or cap gains DISTRIBUTIONS (mutual fund investments) then you have the option of reporting on parent's return without filing a separate return for the child. See Pub 929. Regular capital gains are not eligible."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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