How the Kiddie Tax Works When Your Child Has Investment Income

Lucas and Luna break down the Kiddie Tax rules that apply when a child's unearned income exceeds a certain threshold. They explain how the tax is calculated using the parent's marginal rate rather than the child's lower rate, and walk through a concrete example: a 14-year-old with $4,200 in dividend income and a $1,500 capital gain from a custodial account. They cover the net investment income tax exemption for minors, the importance of filing a separate return for the child, and a real planning tip for families using Uniform Gifts to Minors Act accounts. This episode is essential for parents who have started investing for their kids and want to avoid an unexpected tax bill. Includes a brief, natural listener-support segment tied to the value of clear financial guidance. #KiddieTax #ChildInvestmentIncome #UnearnedIncome #TaxPlanning #CustodialAccounts #UGMA #UTMA #NetInvestmentIncomeTax #NIIT #TaxBrackets #MarginalTaxRate #DividendTax #CapitalGainsTax #FamilyTaxPlanning #Finance #TaxStrategyPodcast #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo