Kiddie Tax (2025)
Rules for taxing a child's unearned income and how it may be taxed at trust/rates of parents.
Who Is Affected
Children under 19 (or full-time students under 24) with significant unearned income may be subject to the kiddie tax.
Key Points
- Unearned income above the annual threshold may be taxed at parents' rates
- Check IRS updates for specific filing thresholds in 2025
- Consider tax-efficient investment accounts for minors