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TABLE 5 - Section 1(e) – Estates and Trusts If Taxable Income Is: The Tax Is: Not over $2,600 15% of the taxable income Over $2,600 but $390 plus 25% of not over $6,100 the excess over $2,600 Over $6,100 but $1,265 plus 28% of not over $9,300 the excess over $6,100 Over $9,300 but $2,161 plus 33% of not over $12,700 the excess over $9,300 Over $12,700 $3,283 plus 39.6% of

the excess over $12,700 .02 Unearned Income of Minor Children Taxed as if Parent's Income (the "Kiddie Tax"). For taxable years beginning in 2018, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,050. This $1,050 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,050 amount is used for purposes of § 1(g)(7) (that is, to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie tax"). For example, one of the requirements for the parental election is that a child's gross income is more than the amount referenced in § 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child's gross income for 2018 must be more than $1,050 but less than $10,500. .03 Adoption Credit. For taxable years beginning in 2018, under § 23(a)(3) the credit allowed for an adoption of a child with special needs is $13,840. For taxable years beginning in 2018, under § 23(b)(1) the maximum credit allowed for other adoptions is