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| *Loan,banking and credit>>>child tax |
Children's bank account tax benefit? |
Children's bank account tax benefit? Yes, the first $800 is tax-free. The second $800 is taxed at the child's rate (very low). Anything over $1,600 is taxed at the parent's rate. This used to apply to children under 14 but the age was recently increased to 18. The age change may not take effect until 2007, though. a child under 12 will not pay any tax if there unearned income (interest dividends etc) are under the minumim threshold. By put money into their accounts, the interest could be tax free. If the income exceeds the threshold, it is taxed at the parents rate. cpa The interest will be taxed at the child's marginal rate, which in most cases is less than the parent's rate. If your child's unearned income exceeds $1,600 in a given year then you'll fall under the "Kiddie Tax" rules and have to pay at your marginal rate. Publication 17, http://www.irs.gov |
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| tax year income tax business tax car tax child tax cigarette tax corporate tax estate tax import tax inheritance tax |
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