unearned income for children

Basic Rules of the Kiddie Tax

Many people wonder how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available

2022-09-13T09:47:16-06:00September 13th, 2022|

The Kiddie Tax and TCJA

Once upon a time, some parents and grandparents would attempt to save tax by putting investments in the names of their young children or grandchildren in lower income tax brackets. To discourage such strategies, Congress created the “kiddie” tax back in 1986. Since then, this tax has gradually become more

2021-04-12T14:56:21-06:00August 14th, 2018|
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