If the net unearned income of a minor child is to be taxed at the parents' tax rate,the parents may elect,under certain conditions,to include the child's gross income on their tax return.

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This is known as the "Kiddie Tax" rule and applies to unearned income of children under the age of 19 (or under the age of 24 if a full-time student). The parents can elect to include the child's income on their tax return if the child's unearned income exceeds a certain threshold amount. The income is then taxed at the parents' tax rate instead of the child's typically lower tax rate.

If the Net Unearned Income of a Minor Child Is