Form CT 186 P , Utility Services Tax Return Gross Income Tax Ny

Instructions and help about Form CT 186 P , Utility Services Tax Return Gross Income Tax Ny

okay so for this video i wanted to go over the irs form 8615 which is used to report the quote kitty tax which is imposed on unearned income of dependent children so the kiddie tax is in place because parents for years have trying to shift money assets to their kids uh dependent children that is and under the belief that well if the money is being earned within their account they're going to have a lower effective tax rate so we'll pay overall less tax as a family okay so the kitty tax kind of steps in here and tries to limit your ability to do that as a parent so i've got a slide in front of us here one slide with the rules and some and some fact pattern we're going to be working with and then we've got a sample 8615 which we'll walk through to see how to compute the kitty tax on this dependent child so dependents generally only need to file a 1040 if they meet certain thresholds so a dependent must file a 1040 if their gross earned income so let's say w2 wages was more than 12 550 fo