For 2014,unearned income in excess of $2,000 of a child under age 18 is generally taxed at the parents' rate.

Name: For 2014,unearned income in excess of $2,000 of a child under age 18 is generally taxed at the parents' rate.
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This is true, according to the Kiddie Tax rule. Any unearned income over $2,000 for a child under age 18 is subject to the parents' tax rate, to prevent parents from shifting investment income to their children in order to benefit from lower tax rates.

For 2014,unearned Income in Excess of $2,000 of a Child