Investor Glossary-kiddie taxInvestor Glossary-kiddie taxInvestor Glossary-kiddie taxInvestor Glossary-kiddie taxInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Kiddie Tax

The HTML to link to this page

A special tax on the investment gains and unearned income of minor children is popularly known as the kiddie tax. The kiddie tax was adopted to close a loophole in the tax law that allowed the shifting of income earning assets to minor children to avoid tax liability. The kiddie tax rule allows $750 of investment income to be tax-free. Investment income under the kiddie tax includes interest, dividend, and capital gains. The kiddie tax provides that the next $750 is taxed at the child's normal tax rate based on total income. The kiddie tax was established in 1986 and covers minor children who are under the age of 14 years as of December 31 of the taxable year. If the child's income exceeds $1,500, the income is taxed at the parent's normal tax rate, not the kiddie tax rate.

Rate this Kiddie Tax definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: required rate of return, ex-dividend date, Key Rate Duration, FICO score, VIX, deferred revenue, class C shares, in escrow, wholly-owned subsidiary, reverse mortgage, minority interest, option premium, risk management, LIBOR, irrevocable trust, average price per share, 144a, implied volatility, margin rate, annual return, current ratio, dividends payable, Zero Cost Collar, real GDP, limit order, EBITDA, open position, stock market close, cancelled check, retained earnings, debt service coverage, deferred tax, phantom income, command economy, APR, ex-dividend, FTSE, per diem, 1031 exchange, labor relations, inflation, stock split, covered put, 401a, diluted share, liquidity ratio, balance sheet, 1035 exchange, quality assurance

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use