TurboTax often gets stuff wrong. You probably answered a question during the interview process that says someone else can claim you as a dependent. If someone can claim you as a dependent, and you have investment income, that often generates the Form 8615.
Thanks that was a thorough example and well explained - well done ! On the child's tax return, could the child contribute to a charity to increase the standard deduction against investment income ?
Yes, the child could make a charitable contribution. For 2021 they can deduct up to $300 of cash contributions even if taking the standard deduction. Amount would be reported on Line 12b of Form 1040.
Great explanation with the example! It's the first year I have report kiddie taxes. I was so confused about the topic until I saw this video. One question regarding capital gains. Does long term and short term capital gains make any difference when reporting kiddie taxes?
Glad it was helpful. Yes, if the dependent child has capital gains or qualified dividend income, all of that income must be reported on the child's Form 1040 and is subject to taxes.
Thanks for your reply! Long term capital gains are taxed at 20% (adding 3.8% for income exceeding certain threshold) while short term capital gains are treated as income. In your video, there is no discussion about the difference between short and long term capital gains. Is it on purpose because kiddie taxes are treated differently?
Thanks for explaining this so well. I am a little confused about the difference between $1100 on 1040 and $2200 on the form 8615. Will Turbo tax allow us to do an extra 1040 and 8615. Thanks so much
In order to complete the form you need to complete the parents tax return first. Line 10 is the total taxes from the parents' tax return. Line 9 is the tax calculated on the child's income using the parent's filing status and rates.
Jason, your videos are awesome. Thank you. I'm an EA down in New Orleans and the training and re-training are well worth the time.
Great to hear it! Thanks for the support
As usual, your videos give us a great level of understanding 👏 🙌
Happy to help!
Thanks! Love your videos. They are to the point, informative and don't have a lot of fluff!
you're welcome!
Thanks!
Jason, thanks for posting this, very helpful!
Glad it was helpful!
You mentioned line 9 adjusted. But did not explain how to calculate it. What lines to add or subtract?
Thank you so much. Very helpful.
Glad it was helpful!
Do you need to list those capital gains on schedule D also?
Thank you so much! You are a great tax expert!
Happy to help!
Hello, why do I lose the children's credits when using this form?
Why was the additional tax on line 11 50% of line 5?
If my parents don't claim me as a dependent, why would turbotax ask me to fill out form 8615?
TurboTax often gets stuff wrong. You probably answered a question during the interview process that says someone else can claim you as a dependent. If someone can claim you as a dependent, and you have investment income, that often generates the Form 8615.
@@JasonDKnott thank you for responding! 🙏🏼 it was exactly that, read thru the interview questions too quick.
Excellent presentation Jason
Thank you!. I'm glad it was helpful
Thanks that was a thorough example and well explained - well done ! On the child's tax return, could the child contribute to a charity to increase the standard deduction against investment income ?
Yes, the child could make a charitable contribution. For 2021 they can deduct up to $300 of cash contributions even if taking the standard deduction. Amount would be reported on Line 12b of Form 1040.
Great explanation with the example! It's the first year I have report kiddie taxes. I was so confused about the topic until I saw this video. One question regarding capital gains. Does long term and short term capital gains make any difference when reporting kiddie taxes?
Glad it was helpful. Yes, if the dependent child has capital gains or qualified dividend income, all of that income must be reported on the child's Form 1040 and is subject to taxes.
Thanks for your reply! Long term capital gains are taxed at 20% (adding 3.8% for income exceeding certain threshold) while short term capital gains are treated as income. In your video, there is no discussion about the difference between short and long term capital gains. Is it on purpose because kiddie taxes are treated differently?
How did you get 45,322?
Thanks for explaining this so well. I am a little confused about the difference between $1100 on 1040 and $2200 on the form 8615. Will Turbo tax allow us to do an extra 1040 and 8615. Thanks so much
i figured this out after watching the video several times. Thanks anyways
Glad it was helpful. Thanks for watching!
On form 8615 where are you pulling line 9 and 10 from?
In order to complete the form you need to complete the parents tax return first. Line 10 is the total taxes from the parents' tax return. Line 9 is the tax calculated on the child's income using the parent's filing status and rates.