Question: What are the kiddie tax rules?
The kiddie tax applies to interest and dividends on investments in your children's names.
Answer: Kiddie tax rules are based on the age of the child. In 2008 the ages were updated and now apply to children under 19, and dependent, full-time students under 24.
The kiddie tax rules will apply when children earn more than $1,900 on their interest plus dividends plus other investment income.
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.
