{"id":617,"date":"2012-03-16T12:00:47","date_gmt":"2012-03-16T17:00:47","guid":{"rendered":"http:\/\/hoorfarlaw.com\/blog\/?p=617"},"modified":"2012-03-16T12:00:47","modified_gmt":"2012-03-16T17:00:47","slug":"tax-rules-may-affect-your-childs-investment-income","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=617","title":{"rendered":"Tax Rules May Affect Your Child&#8217;s Investment Income"},"content":{"rendered":"<p style=\"text-align: center;\">Parents may not realize that there are tax rules that may affect their child&#8217;s investment income. The IRS offers the following four facts to help parents determine whether their child&#8217;s investment income will be taxed at the parents&#8217; rate or the child&#8217;s rate.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2012\/03\/savings.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-thumbnail wp-image-618\" title=\"savings\" src=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2012\/03\/savings-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" \/><\/a><\/p>\n<p><strong>1. Investment income<\/strong> Children with investment income may have part or all of this income taxed at their parents&#8217; tax rate rather than at the child&#8217;s rate. Investment income includes interest, dividends, capital gains and other unearned income.<\/p>\n<p><strong>2. Age requirement<\/strong> The child&#8217;s tax must be figured using the parents&#8217; rates if the child has investment income of more than $1,900 and meets one of three age requirements for 2011:<\/p>\n<ul>\n<li>Was under age 18 at the end of the year,<\/li>\n<li>Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or<\/li>\n<li>Was a full-time student over age 18 and under age 24 at\u00a0the end of the year and did not have earned income that was more than half\u00a0of his or her support.<\/li>\n<\/ul>\n<p><strong>3. Form 8615\u00a0<\/strong> To figure the child&#8217;s tax using the parents&#8217; rate for the child&#8217;s return, fill out Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900, and attach it to the child&#8217;s federal income tax return.<\/p>\n<p><strong>4. Form 8814<\/strong>\u00a0When certain conditions are met, a parent may be able to avoid having to file a tax return for the child by including the child&#8217;s income on the parent&#8217;s tax return. In this situation, the parent would file Form 8814, Parents&#8217; Election To Report Child&#8217;s Interest and Dividends.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Parents may not realize that there are tax rules that may affect their child&#8217;s investment income. The IRS offers the following four facts to help parents determine whether their child&#8217;s investment income will be taxed at the parents&#8217; rate or &hellip; <a href=\"https:\/\/hoorfarlaw.com\/blog\/?p=617\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[51,52,53,16],"class_list":["post-617","post","type-post","status-publish","format-standard","hentry","category-general","tag-form-8615","tag-form-8814","tag-investment-income","tag-irs"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=617"}],"version-history":[{"count":2,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/617\/revisions"}],"predecessor-version":[{"id":620,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/617\/revisions\/620"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}