Career upgrade: Learn practical AI skills for better jobs and higher pay.
Level up
PracticeVideosBlogFlashcardsEspañol

Kiddie Tax

The kiddie tax is a rule that taxes a child's unearned income above a threshold amount at the parents' marginal tax rate, designed to prevent income shifting.

Get personalized explanations
💡

Exam Tip

Kiddie tax applies under 19 (or under 24 if student). First $1,350 tax-free, next $1,350 at child's rate, above $2,700 at parents' rate.

What is the Kiddie Tax?

The kiddie tax requires certain children's unearned income to be taxed at their parents' marginal tax rate.

2025 Thresholds

Income LevelTax Treatment
$0 - $1,350Tax-free
$1,351 - $2,700Child's rate
Over $2,700Parents' rate

Who is Subject?

  • Under 19 years old
  • 19-23 if full-time student
  • Earned income doesn't exceed half of support

Study This Term In

CFP Certified Financial Planner

Study GuidePractice QuestionsCheat SheetFlashcardsCourse Playlist20 videos6 blogs
109 terms5 comparisons

Retirement Planning Guidebook: Navigating the Important Decisions for Retirement Success (The Retirement Researcher Guide)

$23.12 · Buy on Amazon

Take courses on UdemyStudy guide on Mometrix

EA Enrolled Agent

Study GuidePractice QuestionsCheat SheetFlashcards13 videos9 blogs
65 terms4 comparisons

Enrolled Agent Study Cards 2026-2027: IRS Enrolled Agent Exam Prep and Practice Test Questions [Full Color Cards]

$43.26 · Buy on Amazon

Take courses on Udemy

SIE

Study GuidePractice QuestionsCheat SheetFlashcardsCourse PlaylistClient Conversations MasteryDay Trading: A Beginner's Orientation136 videos33 blogs
121 terms4 comparisons

Kaplan Securities Industry Essentials (SIE) License Exam Manual, 4th Edition

$54.99 · Buy on Amazon

Prep course on AchievableTake courses on UdemyOnline course on Mometrix

Series 7

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations MasteryDay Trading: A Beginner's Orientation131 videos33 blogs
118 terms6 comparisons

Series 7 Study Guide 2025-2026: Complete Prep Book for the FINRA General Securities Representative Certification with 10 Full Length Practice Tests and 1500+ Questions & Detailed Answers.

$29.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeTake courses on UdemyOnline course on Mometrix

Series 65

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations Mastery84 videos16 blogs
107 terms7 comparisons

Series 65 Study Guide 2025 – 2026: Your All-in-One Prep to Success with Practice Questions, Detailed Explanations, and Expert Strategies

$25.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeStudy guide on Mometrix

Series 66

Study GuidePractice QuestionsCheat SheetFlashcardsClient Conversations Mastery74 videos14 blogs
98 terms4 comparisons

Series 66 Study Guide 2025–2026: 10 Full-Length Practice Tests, 1600+ Realistic Questions, Detailed Answer Explanations, and Proven Strategies to Pass the Uniform Combined State Law Exam

$29.99 · Buy on Amazon

Prep course on AchievablePractice exams on ExamEdgeFlashcards on Mometrix

Related Terms

Marginal Tax Rate

The marginal tax rate is the tax rate applied to your last dollar of taxable income, representing the percentage of tax you would pay on an additional dollar of income within your current tax bracket.

Learn More with AI

10 free AI interactions per day

Stay Updated

Get free exam tips and study guides delivered to your inbox.

Free exam tips & study guides. Unsubscribe anytime.

← Back to Full Glossary