2018 Changes to "The Kiddie Tax"
The “Kiddie Tax” or tax on a child’s investment or unearned income is seeing some changes to the rates under the Tax Cuts and Jobs Act. Under the old law up to $2,100 of unearned income for a child aged 19 or under, or up to age 24 if they are a full-time student. This still holds true under TCJA, however, income amounts over $2,100 that were previously taxed at the parent’s tax rate are now taxed at the identical rate of income in a trust or estate.
The tax rates for 2018 will be as shown below:
|
Income Amount: |
Tax Rate: |
|
$2,100 to $2,550 |
10% |
|
$2,550 to $9,150 |
24% |
|
$9,150 to $12,500 |
35% |
|
$12,500 and Over |
37% |
The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax services information.
Call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730 as required to set up an appointment.
