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?
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.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
