Search Help

Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
December 2006

Word Count:



Tax on Children

How does the “kiddie tax” work? (T.R., Fairfax, VA)


In 2006, the kiddie tax applies the parent’s tax rate (if higher than the child’s) to an under-age-18 child’s unearned income in excess of $1,700.1


Unearned income is income other than wages, salaries, professional fees, or other amounts received as compensation for personal services.2 Thus, interest, dividends, and capital gains suffer the kiddie tax. The kiddie tax does not apply to the W-2 wages you paid your child. ... Log in to view full article.

Already a subscriber?
Email Address

You’ll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter
Not yet a subscriber?
with a money-back guarantee

Powered by Cranium Softworks - CMS, Subscription Mgmt & Web Development