How the Kiddie Tax Works in 2026 for Families with Investment Income

Lucas and Luna break down the kiddie tax rule for 2026 — the IRS provision that taxes a child's unearned income at the parents' marginal rate. They walk through the specific thresholds: the first $1,300 of unearned income is tax-free, the next $1,300 is taxed at the child's rate, and anything above $2,600 is hit with the parents' rate. Using a concrete example of a family with a teen who earned $4,000 in dividends and capital gains from a custodial account, they show exactly how the calculation works. They also cover strategies to stay under the thresholds, including timing sales and shifting to growth assets. No repeat of prior episodes—this is a fresh, specific angle on a common family tax surprise. #KiddieTax #TaxPlanning #FamilyFinance #InvestmentIncome #UnearnedIncome #CustodialAccount #ChildTax #IRS #CapitalGains #Dividends #2026Tax #TaxThresholds #ParentTaxRate #TaxStrategy #FexingoBusiness #FinancePodcast #BusinessPodcast #TheTaxStrategyPodcast Keep every episode free: buymeacoffee.com/fexingo