Kiddie Tax - Grandparent raising child - parent gone

Technical topics regarding tax preparation.
#1
kathyt  
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445
Joined:
21-Apr-2014 7:42am
Location:
Lake Charles, LA
Client has 3 grandchildren subject to kiddie tax (tribal pay from an Indian Casino) she is raising the children as the parents are drug addicts and neither the grandparent or kids have seen them in years. She never went to court to get custody of the grandkids, but the Indian tribe stepped in and took over custody and gave the kids to the grandmother to raise. They are not living on a reservation. Can I use the grandmother's info for the kiddie tax on the children's return? She is the one claiming them, and even if I could get the parents info - I am pretty certain the income would be zero or something close to that. The grandmother is in the lowest tax bracket herself so it really wouldn't make any bottom line difference, would it be okay just to use the grandmother's info & finish this up?
 

#2
MilesR  
Posts:
725
Joined:
7-Dec-2021 11:10pm
Location:
California
If the grandparents are claiming them then I would think it would be proper/fine to use their info for the kiddie tax. The IRS would probably look at the figures on their return anyway since that's where they are being claimed. You might be able to just file the 8814 on the grandparents' return as well if there isn't any earned income, but I'm not sure if tribal earnings can go on there or not. Never had that one before.
 


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