Unearned Income of Minor Children and Certain Students (LO 6.4)

Explain the two different ways that the tax on unearned income of minor children, or "kiddie tax," can be reported.

The kiddie tax may be computed on Form 8615 which is attached to the child's tax return. Alternatively, the parents may elect to include the income by attaching Form 8814 . To make this election, the child's unearned income must be more than $ and less than $.