For 2016, the amount of exemption that a child can enjoy on any interest, dividends, or capital gains income is limited to:

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As of 2016, the maximum amount of exemption a child can enjoy on any interest, dividends, or capital gains income is $1,050. This exemption is often referred to as the "kiddie tax" exemption and applies to unearned income of children under the age of 19 (or under the age of 24 for full-time students). Any unearned income above this amount is subject to taxation at the child's parent's marginal tax rate.

For 2016, the Amount of Exemption That a Child Can