Page 8

- 8 -

unearned income reported on the child's return that is subject to the "kiddie tax," is $1,100. This $1,100 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,100 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 2020 must be more than $1,100 but less than $11,000. .03 Maximum Capital Gains Rate. For taxable years beginning in 2020, the Maximum Zero Rate Amount under § 1(h)(1)(B)(i) is $80,000 in the case of a joint return or surviving spouse ($40,000 in the case of a married individual filing a separate return), $53,600 in the case of an individual who is a head of household (§ 2(b)), $40,000 in the case of any other individual (other than an estate or trust), and $2,650 in the case of an estate or trust. The Maximum 15-percent Rate Amount under § 1(h)(1)(C)(ii)(l) is $496,600 in the case of a joint return or surviving spouse ($248,300 in the case of a married individual filing a separate return), $469,050 in the case of an individual who is the head of a household (§ 2(b)), $441,450 in the case of any other individual (other than an estate or trust), and $13,150 in the case of an estate or trust. .04 Adoption Credit. For taxable years beginning in 2020, under § 23(a)(3) the credit allowed for an adoption of a child with special needs is $14,300. For taxable years beginning in 2020, under § 23(b)(1) the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $14,300. The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross