Navigating the New “Kiddie Tax” Rules
When Congress passed legislation in May that extended the so-called Alternative Minimum Tax (AMT) patch for one more year, the law included a provision that eliminated the “Kiddie Tax” break for dependent children between the ages of 14 and 18 who have investment income over $1,700. All dependent children under age 18 are now required to be taxed at their parents’ rate on unearned income of $1,700 or more retroactive to January 1, 2006. Read more...
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