The kiddie tax limits the tax savings from a transfer of income-producing property to a minor child by taxing a portion of such income at the parent's marginal tax rate.

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The kiddie tax does limit the tax savings from a transfer of income-producing property to a minor child by taxing a portion of such income at the parent's marginal tax rate. This provision was put in place to prevent parents from shifting income to their children in order to lower their tax burden.

The Kiddie Tax Limits the Tax Savings from a Transfer