The kiddie tax rules may impose substantial limitations on income shifting to your children. They apply if: 1) the child hasn’t reached age 18 before the close of the tax year, or 2) the child’s earned income doesn’t exceed half of his or her support and the child is age 18 or is a full-time […]
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The “kiddie tax” hurts families more than ever
Congress created the “kiddie tax” to discourage parents from putting investments in their children’s names to save tax. Over the years, it has gradually affected more families because the age at which it generally applies was raised to children under age 19 and full-time students under age 24 (unless the children provide more than half […]
