How to report Form 8615 Kiddie Tax income as earned income in Lacerte

A child taxpayer is subject to the Kiddie Tax, Form 8615 and is linked to the parent's return through the family link. This article will help understand how to have Lacerte treat child taxpayer income as earned income instead of investment income.

Follow these steps to report income from a 1099-MISC as earned income:

1. Go to Screen 14.1, Miscellaneous Income.
2. In the section list, select Alimony and Other Income.
3. Enter the 1099-MISC income in the field Income subject to self-employment tax (Ctrl+E).
   • This will tell the program to treat this income as earned income.

    

Follow these steps if this income isn't subject to self-employment tax:

1. Go to Screen 45.1, Self-Employment Tax (Schedule SE).
2. Enter -1 in the field Self-Employment Tax (SE) [O] (code 12).