Income accumulated in a trust for a child less than 19 is taxed at the parents' rates and not the trust's rates.

Name: Income accumulated in a trust for a child less than 19 is taxed at the parents' rates and not the trust's rates.
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Income accumulated in a trust for a child less than 19 is taxed at the trust's rates, not the parents' rates. This is known as the "kiddie tax" rules, which apply to the child's unearned income, not to income accumulated in a trust.

Income Accumulated in a Trust for a Child Less Than