Changes to the kiddie tax

The Tax Cuts and Jobs Act has changed the way unearned income is taxed for your children.

In the past, interest, dividends and other unearned income used to be taxed in phases. The first $1,050 was tax-free, the next $1,050 was taxed at the child's rate and any additional was taxed at the parent's tax rate.

The act now calls for all of a child's unearned income to be taxed using the estate and trust tax table. Call us if you have questions about how the changes will affect your situation.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

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