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7 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 2025, 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 $1,350. This $1,350 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,350 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 2025 must be more than $1,350 but less than $13,500. .03 Maximum Capital Gains Rate (§ 1(h), § 1(j)(5)). For taxable years beginning in 2025, 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 Married Individuals Filing Joint Returns and Surviving Spouse $96,700 $600,050 Married Individuals Filing Separate Returns $48,350 $300,000 Heads of Household $64,750 $566,700 All Other Individuals $48,350 $533,400

If Taxable Income Is:

The Tax Is:

Not over $3,150

10% of the taxable income

Over $3,150 but not over $11,450

$315 plus 24% of the excess over $3,150

Over $11,450 but not over $15,650

$2,307 plus 35% of the excess over $11,450

Over $15,650

$3,777 plus 37% of the excess over $15,650