Kiddies Tax

By | February 23, 2014

Special tax rules apply to children under age 18, and certain older children who receive more than $1,900 of unearned income. To reduce the tax savings that result from shifting income from parents to children, the net unearned income of a child under age 19 (under age 24 if a full- time student) is taxed at the marginal tax rate of the parents.