All glossary terms
Glossary term
Kiddie Tax
Tax on a child's unearned income above a threshold at the parent's marginal rate.
Related terms
2
Jurisdictions
us
Definition
Under Section 1(g), unearned income of certain dependent children above an annual threshold (around $2,600 for 2024) is taxed at the parents' marginal rate. The rule applies to children under 18 and certain full-time students under 24.
Examples
- A 12-year-old with $5,000 of dividend income has the excess above the threshold taxed at the parents' rate.
Related terms
Translations
ESimpuesto sobre los niños
ZH儿童税
DEKindersteuer
FRimpôt sur les enfants
JA未成年者税
Citations
26 U.S.C. · 1(g)
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermDependent
- TermMarginal Tax Rate
Primary sources
- IRS Publication 929 archiveVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.