Hunter L

That is how I interpret it.... 

"4. At least one of the child's parents was alive at the end of 2017."

"These rules don’t apply if neither of the child’s parents were living at the end of the year."

As long as they did not adopt her.  I did some reading on this, the intent of the rule was to avoid wealthy pushing tax to the kids rate, maybe the IRS had a heart and figured if both parents are deceased that is not the motive..

YW...  I just did one a few days ago for a little girl with pension on a 1099R... this can be a very unfair tax.

The p

3 hours ago, Possi said:

New client is raising her niece. Client's sister was murdered by her husband who committed suicide, all with the then 4-yr-old at home.

They were both military.

The child now receives income from the military which will last I don't know how long. It's about $20k annually, with a 1099R for reporting.

The child is now 7, and I need to do 2016 and 2017 returns.

Do I need to know anything special for this? Aunt has all the paperwork to claim the child, and will sign for the child. Aunt claims the child on her tax return, and the 8615 kiddie tax of course is played.

Double check... One of the filing requirements is  "At least one of the parents have to be alive at the end of 2017."

Also, Rita, distributions on a 1099-R count as "unearned" income for the Kiddie tax.