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Glossary Definition

What is a Kiddie Tax?

The kiddie tax is a special provision in the tax code that addresses dependent children's unearned income (investment or passive income). The first $1,150 of unearned income is not taxed, and if the child earns more than $2,300 in investment income, that income is taxed at the parent's marginal rate. The tax applies to dependents up to the age of 23 if they are providing less than half their own support.

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Read the latest tax planning thought leadership from Corvee.

Tax Planning Strategies

Our team of tax experts has scoured tax rules and regulations to create detailed tax strategies you can use to find savings for your clients.

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