Wednesday, February 28, 2024

Kiddie Tax Calculator

kiddie tax calculator

Kiddie Tax Calculator for 2023 & 2024 is an attempt to simplify the calculation of tax on income earned by kids below a certain age.For the year 2024 & 2023 , the latest on kiddie tax rules are simplified in this article Kiddie tax made simple

Kiddie Tax Calculator 2022-2023

2024 & 2023 Kiddie Tax Rates

2024#1,300$2,600$14,600
2023$1,250$2,500$13,850
2022$1,150$2,300$12,950

Kiddie Tax Computation Changes

The Tax Cuts and Jobs Act (TCJA) no doubt , tried to simplify the Kiddie Tax rules considerably , however , it still has lots of ifs and buts .   Kiddie tax computation method is again restored to the original method of computation vide signing of Appropriations Act of 2020. The original kiddie tax computation taxes the child’s net unearned income at the parents’ marginal tax rates if it’s higher than the child’s tax rate.Read the kiddie tax changes article here.

Reporting Kiddie Tax

There are two methods to report the kiddie tax. One method is to report the child’s income on his own return, by filing Form 8615 and the second method is to report the child’s income on the tax return of the parent earning higher by filing Form 8814, Parents’ Election to Report Child’s Interest and Dividends.

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