February 18, 2008
Wealth Management: Estate Planning, Trust Administration & Succession Planning, Taxation Alerts

"Kiddie Tax" Is Expanded
by Bridget McInerney Harris

The "kiddie tax" computes a child's unearned income at the parent's tax rate.  Previously unearned income in excess of $1,700 was computed at the parent's tax rate only for children under the age of 18.  Beginning in 2008, the "kiddie tax" now applies to children under the age of 19 and to children under the age of 24 if they are full time dependent students (unless they provide over half their own support from earned income).  See IRS Form 8615 and Instructions for more information.
Back to Alerts