Q&A: Figuring out when the "kiddie" tax applies to your family

My daughter is a 19-year-old, part-time student in college. Are we subject to "kiddie tax"?

A: The so-called "kiddie tax" was created to cut out a tax loophole in which parents could give stock or other investments as gifts to their children to take advantage of their children's lower tax rates. The rules recently changed, and full-time students under age 24 are now subject to the kiddie tax, but part-time students are exempt. Therefore, your daughter's income is taxed based solely upon her own tax return since she is part time.

Related Videos
David Zetter gives expert advice
David Zetter gives expert advice
Joel Greenwald, MD, CFP
Ben Johnston gives expert advice
Ben Johnston gives expert advice
Ben Johnston gives expert advice
Ben Johnston gives expert advice
Ben Johnston gives expert advice
Syed Night
Ben Johnston gives expert advice
© 2023 MJH Life Sciences

All rights reserved.