How to Avoid the Kiddie Tax, Even with Extended Age

October 2006
Journal of Financial Planning;Oct2006, Vol. 19 Issue 10, p44
Academic Journal
The article offers a look at the effect of the United States' Tax Increase Prevention and Reconciliation Act, which was signed into law on May 17, 2006. The law increased the age of children subject to the Kiddie Tax by four years. The authors discuss the management of children's investments by their parents, such as including a child's income on the parents' tax return, strategies to avoid the Kiddie Tax, and financial aid considerations. The article also presents a diagram that shows when the Kiddie Tax applies, and two charts that show tax computations of a fictional case study.


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