SDM Accounting Insights: The “Kiddie Tax” Hurts Families More Than Ever

Episode 24 August 20, 2019 NaN
SDM Accounting Insights: The “Kiddie Tax” Hurts Families More Than Ever
SD Mayer
SDM Accounting Insights: The “Kiddie Tax” Hurts Families More Than Ever

Aug 20 2019 | NaN

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Show Notes

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.

https://www.sdmayer.com/insights/blogs/individual-tax/the-kiddie-tax-hurts-families-more-than-ever/

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