Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

What do you need to know about the Kiddie Tax?

Not every child in Florida and elsewhere in the United States makes a significant amount of money outside of a job. However, some are fortunate enough to receive a decent amount of spending money from their loved ones. Is this money taxable, you may wonder? If your minor children get an allowance, received monetary gifts from Grandma and Grandpa or have other means of enjoying a full piggy bank - without having a job - you may be interested in learning about the Kiddie Tax.

What is the Kiddie Tax? According to Intuit, the Internal Revenue Service created this tax to discourage parents from placing investments and assets under their children's names, thus reducing their own tax responsibilities. Originally, the Kiddie Tax applied to kids under the age of 14. Now, it applies to all children who were under 18 by the end of the year, or those under 18 with jobs who made equal to or less than half of the amount of their parental support. Your children between the ages of 19 and 23 may also be subject to the Kiddie Tax if their income was less than half or equal to your monetary support and they were full-time students.

How does the Kiddie Tax work? If your child received more than $2,100 in gifts, allowance or other unearned income, any income above that amount would be taxed according to your marginal tax rate. Income earned from a job is not subject to the Kiddie Tax.

Tax issues can be complicated, especially if they concern your children's money. Therefore, this information is meant only to educate you and should not replace the advice of a lawyer.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions