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.
March 1 — Farmers & fishermen
File your 2018 income tax return (Form 1040) and pay any tax due Details
March 10 — Employees who work for tips
If you received $20 or more in tips during February, report them to your employer Details
March 15 — S Corporations
File a 2018 calendar year income tax return (Form 1120S) and pay any tax due Details
March 15 — S Corporation election
File Form 2553, Election by a Small Business Corporation, to elect to be treated as an S corporation beginning with calendar year 2018. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2019.
March 15 — Partnerships
File a 2018 calendar year return (Form 1065) Details
March 15 — Electing larger partnerships
Provide each partner with a copy of Schedule K1 (Form 1065B), Partner's Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K1. This due date applies even if the partnership requests an extension of time to file the Form 1065B by filing Form 7004
March 15 — Partnerships
Electing large partnerships: File a 2018 calendar year return (Form 1065-B) Details
March 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule Page 6 Publication 509 applies, deposit the tax for payments in February.
March 31 — Electronic filing of Forms W2
File copies of all the Forms W2 you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms W2G
File copies of all the Forms W2G you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms 8027
File Forms 8027 for 2018. This due date applies only if you electronically file.