Kiddie Tax � 2021 | Best Guide

Finn Kevin06 Apr, 2022Finance

?Kiddie Tax? is the term used for the tax on certain unearned income of children taxed at the parent?s rate instead of the child?s rate. Children typically are in a lower tax bracket than their parents and the Kiddie Tax was developed to prevent parents from lowering their tax liability by shifting investment income assets to their children.