2010 Kiddie Tax - Filing a return for your child can be avoided by reporting the child's income on your return. For any year the kiddie tax applies to your child, you may be able to report the child's investment income on your tax return.

The 2010 kiddie tax applies to certain children with investment income above a threshold amount.This may cause the total amount paid to be higher or lower, but its convenient. A good Tax return software like Turbo tax can definitely help you a lot here

But try considering the cost benefit ratio while making this decision.

For claiming this format of income reporting format of kiddie tax,you can do this only if all of the following are true:

    * The 2010 kiddie tax applied to your child for the year.It can be for students up to age 24.
    * The child's only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends. If your child has any other income, such as a capital gain or loss from selling shares of stock, the election is not available.
    * In 2010,  the child's gross income for the year was less than $9,500
    * The child is required to file a tax return for the year. If the child's income is too low to require a tax return,

you probably don't want to report the income on your tax return, but even if you want to do so, the IRS says it isn't allowed.

The 2010 kiddie tax reporting format is done by reporting the child's income on a special form and attaching it to your return.

To help the process of filing your tax return easier, try using a good quality tax return software which is fully updated with latest tax rules. It can really help you lower your tax liabilities and can also help you increse your tax refund.

Click on the link to check my recommended software to file your 2010 Tax return