"Kiddie Tax" To Apply to Grownup Kids Next Year
Effective January 1, 2008, the "kiddie tax," which applies the parent's tax rate to children's unearned income over $1,700 (for 2007) will apply to dependent children under age 19 and dependent full-time college students under 24. Prior to 2006, the tax only applied to children under 14, but it was raised to 18 in 2006. See this article on Kiplinger.com for details and planning tips.
