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TABLE 5 - Section 1(j)(2)(E) – Estates and Trusts

.02 Unearned Income of Minor Children Subject to the “Kiddie Tax”. For taxable years beginning in 2024, 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 $1,300. This $1,300 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,300 amount is used for purposes of § 1(g)(7) 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 2024 must be more than $1,300 but less than $13,000. .03 Maximum Capital Gains Rate (§1(h), §1(j)(5)). For taxable years beginning in 2024, the maximum zero rate amounts and maximum 15 percent rate amounts under § 1(j)(5)(B), as adjusted for inflation, are as follows: Filing Status Maximum Zero Rate Amount Maximum15% Rate Amount

Over $365,600

$98,334.75 plus 37% of the excess over $365,600 If Taxable Income Is: The Tax Is:

Not over $3,100

10% of the taxable income

Over $3,100 but not over $11,150

$310 plus 24% of the excess over $3,100

Over $11,150 but not over $15,200

$2,242 plus 35% of the excess over $11,150

Over $15,200

$3,659.50 plus 37% of the excess over $15,200