kiddie tax

kiddie tax definition - business

kiddie tax

A federal income tax levied on the investment income of children 18 years of age and under, or under age 24 if the child is a full-time student. Income above a specified amount is taxed at the parent's top, or marginal, tax rate. The kiddie tax is designed to make it less advantageous for parents to shift income to their children.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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