How the Kiddie Tax Affects Your Childs Investment Income in 2026

Episode 41 of The Tax Strategy Podcast with Fexingo digs into the kiddie tax—the IRS rule that taxes a child's unearned income at the parent's marginal rate. Lucas and Luna break down the 2026 thresholds, why a 16-year-old with a summer job and a brokerage account might face a surprise tax bill, and how to structure custodial accounts to stay under the radar. They walk through a real scenario: a family where the child earned $3,200 in dividends and capital gains, and what that means for their Form 8615. Plus, strategies like using a 529 plan or shifting to growth stocks to minimize the bite. No fluff, just the number you need to know: $2,600—the 2026 kiddie tax threshold for unearned income before the parent's rate kicks in. #KiddieTax #TaxStrategy #InvestmentIncome #CustodialAccounts #Form8615 #ChildTax #PassiveIncome #CapitalGains #Dividends #TaxPlanning #IRS #2026Tax #Finance #FexingoBusiness #BusinessPodcast #TaxTips #ParentingFinance #WealthManagement Keep every episode free: buymeacoffee.com/fexingo