| More Children Included in Kiddie Tax
For 2008 and later tax years, the "kiddie tax" has been broadened to include children age 18 and full-time students age 19-23, unless the child's earned income is more than 50% of his or her support. Previously, the "kiddie tax" only applied to children under age 18.
If the child's unearned income (non-compensation) is over $1,800, they will be taxed at the parent's rate, if the parent's rate is higher than the child's rate. The law does not require that the child in fact be a dependent.
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