Welcome,
2017! As the New Year rolls around, it's always a sure bet that there will be
changes to current tax law and 2017 is no different. From health savings
accounts to tax rate schedules and standard deductions.
Tax Changes for 2017 on "Kiddie Tax"
For taxable
years beginning in 2017, the amount that can be used to reduce the net unearned
income reported on the child's return that is subject to the "kiddie
tax," is $1,050 (same as 2016). The same $1,050 amount is used to
determine whether a parent may elect to include a child's gross income in the
parent's gross income and to calculate the "kiddie tax." For example,
one of the requirements for the parental election is that a child's gross
income for 2017 must be more than $1,050 but less than $10,500.
For 2017,
the net unearned income for a child under the age of 19 (or a full-time student
under the age of 24) that is not subject to "kiddie tax" is $2,100.
We
are licensed in All States. We are affordable, experienced, and friendly. We
are an Authorized IRS e-file Service Provider. If you would like to schedule a
Free Initial Consultation to learn more about the tax preparation and tax
planning & compliance services we offer to businesses and individuals, send
us an e-mail or call Amare Berhie today at 651-300-4777 to schedule a
convenient time.
Amare Berhie,
Senior Accountant
CEO, ABA Tax
Accounting
651-300-4777
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