Tax Rates for Tax Year 2018 - Tax Reform

Kiddie Tax Changes (8615):

Children (under 18) with unearned income over $2,100 required to file Form 8615 are no longer taxed at their parents' tax rate. Instead, they will be taxed at fiduciary rates.
  • Earned income taxed at single rates
  • Unearned income taxed at trust & estate rates

The 2018 Estate and Trust Income Tax Rates for unearned income over $2,100 threshold;

If taxable income is:
The tax is:
Not over $2,550
10% of taxable income
Over $2,550 but not over $9,150
$255 plus 24% of the excess over $2,550
Over $9,150 but not over $12,500
$1,839 plus 35% of the excess over $9,150
Over $12,500
$3,011.50 plus 37% of the excess over $12,500
Section 1(j)(2)(E) of ordinary income tax rates and thresholds for trusts and estates

The 2018 Tax Rates for Childs' Long-Term Capital Gains and Qualified Dividends;

If taxable income is:
The tax is:
Up to $2,600
Over $2,600 and up to $12,700 ($2,601 - $12,700)
Over $12,700 ($12,701 +)
Section 1(j)(5) qualified dividend and long-term capital gain income with adjusted thresholds

State Conformity:

California and Hawaii continue to calculate tax based on parents' and siblings' rates.


Other Articles to Try:

2018 Individual and Business Tax Reform - Summary of Changes (Click Here to view)