Enrolled Agent Exam [Part 1] 63, Kiddie Tax Rules

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Kiddie Tax applies to unearned income for children under 19, or under 24 if a full-time student. • For 2025, the first $1,300 of unearned income is offset by the child's standard deduction and is tax-free. • The next $1,300 of unearned income is taxed at the child's own marginal tax rate. • Unearned income exceeding the $2,600 threshold is taxed at the parents' higher marginal rate using Form 8615. • The election to use Form 8814 is only available if the child's income consists solely of interest and dividends and meets specific criteria. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep