Kiddie Tax Calculator

Child’s Information

 
 
 

Unearned Income Details

 
 
 
 

Parents’ Tax Information

 
 

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Disclaimer: This calculator provides estimates for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws are complex and subject to change. Please consult a qualified tax professional for personalized guidance.

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Frequently Asked Questions

What is the Kiddie Tax?
The Kiddie Tax is a tax rule that applies to unearned income of children under a certain age, taxing it at the parents’ marginal tax rate to prevent families from avoiding taxes by shifting income to their children.
Who is subject to the Kiddie Tax?
Children under age 19, or under age 24 if full-time students not providing over half of their own support, with unearned income exceeding certain thresholds are subject to the Kiddie Tax.
What types of income are considered unearned?
Unearned income includes interest, dividends, capital gains, and other investment income, as well as certain trust distributions and taxable scholarships.
How can I minimize the Kiddie Tax?
Strategies include investing in tax-efficient assets, utilizing tax-advantaged accounts like 529 plans, and timing income recognition to when the child is no longer subject to the Kiddie Tax.