Just thought of a couple things
1) Does the Kiddie Tax increase the income reported in the parents' taxable income? Or the kids, but just at the parents' rates? Because the former would create potential issues for those filling out the FAFSA and/or getting ACA subsidies
2) Does the Kiddie Tax get paid at the parents' LT capital gains rate for long-term capital gains? Or ordinary income? Huge difference but transferring long-term capital assets would be enormously less attractive in the latter case
1) Does the Kiddie Tax increase the income reported in the parents' taxable income? Or the kids, but just at the parents' rates? Because the former would create potential issues for those filling out the FAFSA and/or getting ACA subsidies
2) Does the Kiddie Tax get paid at the parents' LT capital gains rate for long-term capital gains? Or ordinary income? Huge difference but transferring long-term capital assets would be enormously less attractive in the latter case
Statistics: Posted by orthros — Thu Nov 28, 2024 7:40 am — Replies 6 — Views 373