The kiddie tax is a U.S. federal tax rule under Internal Revenue Code § 1(g) that applies to certain unearned income of children. It taxes a child’s investment and other passive income, such as interest, dividends, capital gains, rental income, royalties, and some pension or trust income — at their parents’ marginal income-tax rate, instead of at the child’s lower rate.
The kiddie tax is a U.S. federal tax rule under Internal Revenue Code § 1(g) that applies to certain unearned income of children. It taxes a child’s investment and other passive income, such as interest, dividends, capital gains, rental income, royalties, and some pension or trust income — at their parents’ marginal income-tax rate, instead of at the child’s lower rate.
Source: Wikipedia "Kiddie tax" · CC BY-SA 4.0
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