“Refresher on the Kiddie Tax
and How to Avoid It”
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with all the details…
I’m not kidding.
If you have children under age 24, you need to know about the kiddie tax and how to avoid it.
Kiddie tax basics.
The important fact to understand is that kiddie tax rules can cause a portion of an affected child’s net unearned income to be taxed at higher rates than would otherwise apply.
Key point: Under the kiddie tax rules, a portion of a child’s net unearned income can be taxed at the parent’s marginal federal income-tax rate. Ouch!
When the kiddie tax cuts in.
The kiddie tax applies when four important requirements are met for the tax year in question.
I’ll tell you what these requirements are when you read my new article. I’ll also tell you how to calculate the kiddie tax. (Hang on. This gets a bit complicated.)
How to beat the kiddie tax.
Here are two ways to go about it…
Exploit the unearned income threshold.
The kiddie tax applies only when your child has
unearned income in excess of the threshold for that
year. The threshold for 2023 is $2,500.
Choose the right investments.
Even when your child owns significant investment assets, you can often avoid the kiddie tax, or keep it to a bare minimum, by picking the right investments. I’ll give you specific examples when you read my new article.
And I’ll provide a lot more information too.
Start planning on ways
to reduce the excessive kiddie tax.
My new article contains many legal strategies that can help you reduce or even eliminate the kiddie tax, but doing so requires planning. To find out more, and I’m not kidding…
CLICK HERE and read my completely new article titled:
“Refresher on the Kiddie Tax
and How to Avoid It”