Kids Income

[gman]

Childs income to be reported on parents return(int. & div) If parents owe no tax(sch c loss)
will it offset tax owed on childs income??

[RJM]

Kiddie tax form instrux

The kiddie tax form calculations have an adjustment for using the "greater of" the kid's marginal tax rate or the parents' marginal rate. So it won't work this way. But you may be able to just elect to report the child's invesment income on the parent's return. I don't know the exact rule for this, so maybe someone els can post it. -Bob