What Happens If I Miss the Tax Deadline for My Child’s Return?

If you need to report your child’s unearned income, the information will be due the same time as the tax deadline for your personal return. Are you asking yourself, “What if I won’t be ready to file by the due date or what happens if I miss the tax deadline?” Don’t worry — the H&R Block tax professionals are here to help.

First, we’ll explain your options if it’s still before the deadline. You can either:

• Complete Form 8615: Tax for Certain Children Who Have Unearned Income based on an estimate of your return. You might need to amend your child’s return after you file if your return differs from the estimate you used on Form 8615.
• File an extension for your child’s return — paying any tax due based on an estimate of your return — and wait until you file your return to complete your child’s return.

Missed the Tax Filing Deadline? What’s Next

If you’ve missed the tax filing deadline, you should prepare your return as soon as possible to minimize potential penalties. To report your child’s unearned income over $2,100 on your return, you’ll need to complete Form 8615. You should note that for 2018, children’s unearned income over $2,100 is taxed using the rates for estates and trusts.

What counts as unearned income? Taxable income that doesn’t count as earned income is considered unearned income. This can include taxable interest, capital gains, rent, royalties, and ordinary dividends. It also includes taxable scholarship and fellowship grants not reported on Form W-2, taxable social security benefits, unemployment compensation, income received as the beneficiary of a trust, pension and annuity income, and alimony.