Lawmakers created the “kiddie tax” to prevent you from slashing your tax bill by shifting income to your children (who usually are in much lower tax brackets).
IMPORTANT: The tax once applied only to kids under the age of 14. But this odious tax can now apply to investment income of children under 24!
Want to learn how to avoid kiddie tax problems and actually make the tax work for you? Read my new article titled Tax Tips: Secrets to Beating the Kiddie Tax.
Three ways our fact-filled article can help you:
- You’ll learn the kind of income the IRS wants to tax. The kiddie tax doesn’t apply to all of your children’s income. It only seeks to tax their “unearned” income which comes from one of six sources. We’ll list them for you when you read the full article.
- We’ll tell you who must pay the kiddie tax. The kiddie tax applies to children with more than $2,000 of unearned income who fall into one of five categories. We’ll tell you what they are when you read the full article.
- We’ll explain how to use an IRA to avoid the kiddie tax! A regular IRA and a Roth IRA can both be used to your advantage. We’ll show you how when you read the full article.