Question: What is kiddie tax income?
The kiddie tax applies to interest and dividends on investments in your children's names.
Answer: Kiddie tax income is calculated when children earn more than $1,900 on their interest plus dividends plus other investment income. If children earn more than that, part of their income will be taxed at the parent's tax rate instead of the child's tax rate.
Kiddie tax income doesn't include income the child earned from a job or self-employment.
You can compute the kiddie tax for free using CompleteTax.
