Pub. 17, Chapter 32 - Tax on Investment Income of Certain Minor Children
This chapter discusses two special tax rules that apply to certain
investment income of a child under age 14.
- The child's parent may be able to choose to include the
child's interest and dividend income on the parent's return rather
than file a return for the child. (See Parent's Election To
Report Child's Interest and Dividends, later.)
- If the child's interest, dividends, and other investment
income total more than $1,400, part of that income may be taxed at the
parent's tax rate instead of the child's tax rate. (SeeTax for
Children Under Age 14 Who Have Investment Income of More Than $1,400,
later.)
In both cases, the term "child" includes a legally adopted
child and a stepchild. These rules apply whether or not the child is a
dependent.
These rules do not apply if:
- The child is not required to file a tax return, or
- Neither of the child's parents were living at the end of the
tax year.
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