{"id":6472,"date":"2023-01-17T04:45:04","date_gmt":"2023-01-17T04:45:04","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6472"},"modified":"2023-01-17T04:45:33","modified_gmt":"2023-01-17T04:45:33","slug":"7-kiddie-tax-planning","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/7-kiddie-tax-planning\/","title":{"rendered":"7 Investments for Kiddie Tax Planning"},"content":{"rendered":"\n
\"kiddie <\/picture><\/figure>\n\n\n\n

The “kiddie tax<\/a>” is a provision in the U.S. tax code that taxes unearned income (such as interest, dividends, and capital gains) of children at their parents’ tax rate, rather than at the child’s own lower tax rate. The purpose of the kiddie tax is to prevent parents from transferring assets to their children in order to take advantage of the children’s lower tax rates.<\/p>\n\n\n\n

The portion of investment income of a child<\/a> that\u2019s taxed under the kiddie tax rules may be reduced or eliminated if the child invests in vehicles that produce little or no current taxable income. These include:<\/p>\n\n\n\n

\n

Table of Contents<\/p>\n