2008 kiddie tax and zero % rate

[Kram BergGold]

In 2008 a kid, 17 years old has $15,000 of LT cap gain. His parents make 200k. He is subject to kiddie tax. Will he get the zero percent tax rate because he is not in the 25% bracket or do his parents disqualify him?

[solomon]

I think

the amount above 1700 would be at the parent's rate - emphasis on think. By the way, the Small Business Tax Relief Provisions included in the supplemental spending bill - assuming it comes out of conference that way increases the kiddie age to under 19 and under 24 if a full time student.

[Mike Mac]

new provisions

Just read in Accountants World web site that, last week, the President signed the tax bill that contained the new provisions for expanding the kiddie tax to those ages.