Six year old inherits IRA

[JT2307]

Granddaughters grandfather dies in a tragic accident - she received an IRA - her 1099 R is only $3,292.29 - Is doesn't appear I am able to report it on the fathers return, unless I am missing something. he only made $22,000.
So it results in a tax liability of almost $2,000

Thoughts? Thanks in advance

[Bucky]

Me think you are missing something.

[Lee Welter]

The child's 1099-R is NOT reported on her father's income tax return. A dependent's standard deduction is about $1050 or earned income, so she will not need to pay much tax. Was there withholding? Only interest, dividends, and cap gain distributions can be reported on the parent's tax return. The father shouldn't have much of a tax liability with at least one dependent and EIC.

[DoubleO]

Are inherited IRAs subject to the unearned income rules for dependent children? It still would not go on dad's return, but might be subject to kiddie tax rules. I'd have to look that up.

[JT2307]

It seems to fall under the kiddie tax and I can't find anything that says different..

[Rapid Robert]

It seems to fall under the kiddie tax and I can't find anything that says different..

Yes. And still, there is nowhere near $2,000 tax on $3,200 taxable income according to the facts you stated. Either you've left something out or you aren't using your software properly.