Tax On Child’s Investment Income

For all of you taxpayers out there that pay estimated taxes each year and are planning to do the same in 2009, here’s our latest tip about changes in estimated taxes for this year. This one has to do with the taxes you may be paying for children with investment income above a certain level.

According to the IRS, generally, Form 8615 (PDF) will be required to figure the tax for children with investment income of more than $1,900.

For more information, check out Publication 929 (PDF). It’s the IRS’ guide to tax rules for children and dependents.