Taxation of Minors (under Kiddie Tax) (May need Kaye to answer!)

Home Fairmark Forum Other Tax Topics Taxation of Minors (under Kiddie Tax) (May need Kaye to answer!)

Viewing 1 post (of 1 total)
  • Author
    Posts
  • #61116
    47percent
    Participant

    In the following case, does the child skate? No tax filing required and nothing is added to the ACA MAGI? (See below)
    =====================
    From IRS website:
    Minors need to file a return if their income exceeds the following:

    Passive income alone > $1,100
    Earned income alone > $12,400
    Mix of the above: EI + Smaller of (PI, $350) > Gross Income;

    =======================
    Social Security payment is NEITHER considered Earned Income NOR considered Passive Income.

    A child’s Social Security benefits are tax-free as long as her provisional income is less than the base amount. The base amount is $25,000 for a single person. Provisional income is the total of:

    50% of her Social Security benefits
    Other taxable and tax-exempt income.
    ==========================

    Then there is this rule that in the calculation of MAGI for ACA purposes, that the child’s income is added to the household income ONLY if the child is REQUIRED to file taxes.
    ===========================

    My question is the following:
    Earned Income = $5,000
    Passive Income = $250
    Social Security Income = $12,000

    In the above scenario, does the child skate? No tax filing required and nothing is added to the ACA MAGI?

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.