Finance Questions » Kiddie Tax

How Are UGMA Account Withdrawals Taxed

admin — Fri, 12 Oct 2007 12:58:43 +0000

When opening an UGMA account, people often don't think about taking money from their UGMA account. But, after a few years, the most popular questions concerning UGMA accounts concern borrowing money from UGMA and how are UGMA account withdrawals taxed. At some point in time, taking money from your UGMA account may be necessary. If [...]

How Are UGMA Account Withdrawals Taxed is a post from: Finance Questions

UGMA UTMA

admin — Tue, 04 Sep 2007 23:05:55 +0000

UGMA stands for Uniform Gift for Minors. UTMA stands for Uniform Transfers to Minors. What are the tax consequences of setting up a custodial account? The assets of an UGMA / UTMA account are the minor's property outright. Any gifts made to an UGMA / UTMA account are irrevocable and the donor relinquishes all rights [...]

UGMA UTMA is a post from: Finance Questions

Taxes on Child’s Capital Loss

admin — Wed, 15 Aug 2007 16:06:07 +0000

How is a child's capital losses treated for tax purposes? Any capital losses in an UGMA / UTMA account belong to the child, not the parents. The parents cannot report the capital losses on their tax return or use the losses to offset their own capital gains. Generally, if the child's has ordinary income of [...]

Taxes on Child’s Capital Loss is a post from: Finance Questions

Dependent Child Tax

admin — Mon, 09 Jul 2007 14:34:20 +0000

When is a dependent child required to file a federal income tax return? A dependent child must file a tax return if any one of the following applies: Unearned income was more than $850 (for 2006) or Earned income was more than $5,150 ($4,850 previously) or Gross income (total unearned and earned income) was more [...]

Dependent Child Tax is a post from: Finance Questions

Dependent Child’s Income Tax

admin — Tue, 26 Jun 2007 12:43:33 +0000

How is a dependent child 's income taxed? Dependent children age 14 and over are taxed at the rates for Single taxpayers. Standard Deduction: A dependent child is entitled to a standard deduction of: The higher of: $850 (for 2006) or, $300 plus earned income (wages, salary, tips, etc.) up to a maximum of $5,150. [...]

Dependent Child’s Income Tax is a post from: Finance Questions

Kiddie Tax Reporting

admin — Fri, 04 May 2007 20:55:44 +0000

How is the Kiddie Tax reported on a tax return? For federal income tax returns, there are two possible ways to report and pay the Kiddie Tax. (State reporting will vary by state.) Child's Return: The Kiddie Tax computation is generally done on IRS Form 8615, which must be attached to the child's tax return. [...]

Kiddie Tax Reporting is a post from: Finance Questions

Kiddie Tax

admin — Thu, 12 Apr 2007 00:03:58 +0000

What is the kiddie tax? A child who is a dependent of their parents will pay taxes at the child tax rate if they only have unearned income between $850 and $1,700 (for 2006). If a child under age 14 has more than $1,700 (2006) in unearned income that income may be taxed at the [...]

Kiddie Tax is a post from: Finance Questions

Income Tax for Children

admin — Mon, 26 Mar 2007 03:48:09 +0000

There is income tax for children. Children with income may need to file income tax. Calculating income tax for children is different from calculating income tax for adults and parents. When filing income tax for children, child tax rates apply for income under a certain amount specified by the IRS. Above that threshold, income tax [...]

Income Tax for Children is a post from: Finance Questions