In certain circumstances a child with very little income may have at least a portion of their income taxed at the parents' marginal tax rate.

Question

Quizplus · Accepted Answer

This is known as the "kiddie tax" and applies to children under the age of 18 (or 24 if a full-time student) with unearned income over a certain threshold. The unearned income is taxed at the parents' marginal tax rate if it is higher than the child's rate.

In Certain Circumstances a Child with Very Little Income May