The 1986 tax bill brought another cut in the top rate, to 28 percent, although more income could be taxed.

Until now, that income has been taxed at 15 percent.

The income is taxed as it was under the old law, at the child's rate.

And possibly the income would be taxed at 15 percent.

Instead, all personal income would be taxed at a flat rate of 6 percent.

The form was created because the new tax law requires that such income be taxed at the parents' rate.

The income from the investments would be taxed at the child's lower rate.

With older children, even income in excess of $1,000 is taxed at the child's rate.

Thus, the income could not be taxed upon the taxpayer, under this head.

But for the first time, gambling income would also be taxed at that rate.