Tax on a child’s investment income, which is taxed at the parents' rate under certain conditions.
- Unearned income within reach of the kiddie tax includes interest, dividends and capital gains.
- The kiddie tax applies regardless of whether the child may be claimed as a dependent by either or both parents.
- The new laws apply the kiddie tax to persons under the age of 19 and also to persons under age 24 who are full-time students.
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