Question

Which of the following children would generally be subject to the “kiddie tax”?

Answer 1

The kiddie tax applies to a child’s unearned income (e.g., interest, dividends, capital gains) when three basic conditions are met:

1. The child’s unearned income exceeds the annual threshold (the amount that must be reported before kiddie tax rules kick in).
2. The child is in one of these age/support categories at year‑end:
- under age 18, or
- age 18 and the child’s earned income is not more than half of his/her support, or
- age 19–23 and a full‑time student and the child’s earned income is not more than half of his/her support.
3. The child does not file a joint return (except to claim a refund) and has at least one living parent at year‑end.

Examples:
- A 16‑year‑old with substantial dividend income — yes, subject to kiddie tax.
- A 22‑year‑old full‑time college student whose parents provide more than half of support and who has large investment income — yes.
- A 24‑year‑old full‑time student — generally no.
- A 19‑year‑old who supports himself (earned income > half of support) — generally no.

If you have the specific choices from your question, paste them and I’ll pick which one(s) would be subject.