Congress created the “kiddie tax” to discourage parents from putting investments in their children’s names to save tax. Over the years, it has gradually affected more families because the age at which it generally applies was raised to children under age 19 and full-time students under age 24 (unless the children provide more than half of their own support). Now, under the Tax Cuts and Jobs Act, the kiddie tax hits even harder. For 2019, an affected child’s unearned income above $2,200 generally will be taxed at rates paid by trusts and estates, up to 37%. That means children’s unearned income could be taxed at higher rates than their parents’ income. Contact us for details.
If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (or a SEP-IRA). It’s critical to...
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Nonprofit trade associations, or 501(c)(6) organizations, exist to promote their members’ common interests and improve business conditions. But your association doesn’t qualify for tax-exempt...