Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
Is it ever advantageous to not claim your kids as deductions ?
What if you are caught with AMT, and your kid under 18 has investment income over $1,700 ?
There's form 8615 -- which asks for parents income - above a certain level, the income gets taxed at parents rate.
If you dropped your kid as a deduction, the parent's tax rate might not get any better -- but the kid might avoid 8615 - and pay less tax ?
Appreciate any thoughts.
What if you are caught with AMT, and your kid under 18 has investment income over $1,700 ?
There's form 8615 -- which asks for parents income - above a certain level, the income gets taxed at parents rate.
If you dropped your kid as a deduction, the parent's tax rate might not get any better -- but the kid might avoid 8615 - and pay less tax ?
Appreciate any thoughts.