ewbcpa
Level 1
03-04-2020
10:52 AM
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I am using ProSeries Basic and have a 16 year old client with $4300 of unearned capital gain income and no other income. I believe that they should be subject to the Kiddie Tax but the program is not calculating any tax due. Am I doing something wrong?
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Level 15
03-04-2020
11:49 AM
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Yes, they are subject to the kiddie tax. The program is correct, they owe no tax on $4300 of capital gain income. Here is the link for instructions, and if you fill out the worksheets you will see why.