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In response, the federal government changed the tax treatment of childrens unearned income by taxing it at the parents tax rate. Form 8615 is used to make the childs tax calculations for this income.
If you are completing the parents return, DO NOT enter the information for Form 8615 Tax for Certain Children Who Have Unearned Income but DO complete Form 8814 Parents Election To Report Childs Interest and Dividends.
Share: The W-4 Form is the IRS document you complete for your employer to determine how much should be withheld from your paycheck for federal income taxes and sent to the IRS. Accurately completing your W-4 will help you avoid overpaying your taxes throughout the year or owing a large balance at tax time.
A W-2 tax form shows important information about the income youve earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. You use this form to file your federal and state taxes.
The IRS 1040 form is one of the official documents that U.S. taxpayers use to file their annual income tax return. The 1040 form is divided into sections where you report your income and deductions to determine the amount of tax you owe or the refund you can expect to receive.
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For tax purposes, the childs age is the age on December 31. The child is required to file the form if any of these conditions apply: The child is under 18 at the end of the year. The child is 18 years old and does not have earned income that is more than half of the childs support for the year, or.
If the childs unearned income is more than $2,300, use Form 8615 to figure the childs tax. Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income).
Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust.

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