Children are usually in lower tax brackets than their parents. One strategy for saving money on taxes is to transfer income-producing assets to children so they pay tax on the investment income at their lower tax rates.
The IRS limits the benefit of this strategy with special rules for children who have substantial investment income.
You don't have to worry about this rule unless your child has $2,000 or more in interest, dividend and other investment income.
If your child's interest and dividend income is less than $10,000, you may choose to include that income on your return.
Your child must file his or her own return to report his or her income if the child has $10,000 or more in investment income.
However, your child may still need to file his or her own tax return if he or she has other income, such as wages.
TaxAct uses information from your joint tax return to determine the correct tax rate for your child's investment income.
If you as the parent choose to report a child's income on your return, TaxAct reports that income on Form 8814, Parents' Election To Report Child's Interest and Dividends.
September 2 — Everyone
Federal Holiday (Labor Day) Details
September 10 — Employees who work for tips
If you received $20 or more in tips during August, report them to your employer Details
September 15 — Individuals
Make a payment of your 2019 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment Details
September 15 — S Corporations
File a 2018 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you timely requested an automatic 5-month extension Details
September 15 — Partnerships
File a 2018 calendar year return (Form 1065). This due date applies only if you were given an additional 5-month extension Details
September 15 — Corporations
Deposit the third installment of estimated income tax for 2018 Details
September 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in August.