Kiddie Tax – DougFreemanCPA.com

Shift income to take advantage of the 0% long-term capital gains rate

(GST) Generation-Skipping Transfer Tax Consequences, (LTCG) Net Long-Term Capital Gain, Federal Taxes, Gifts, Investment Income Tax (NIIT), Kiddie Tax, Modified Adjusted Gross Income (MAGI) / Douglas Freeman

Are you thinking about making financial gifts to loved ones? Would you also like to reduce your capital gains tax? If so, consider giving appreciated stock instead of cash. You might be able to eliminate all federal tax liability on the appreciation — or at least significantly reduce it. Leveraging lower rates Investors generally are subject to […]

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The kiddie tax could affect your children until they’re young adults

Captial Gains, Federal Income Tax, Kiddie Tax / Douglas Freeman

The so-called “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. For purposes of this federal income tax provision, a “child” can be up to 23 years old.

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How savings bonds are taxed

Bonds, Kiddie Tax, Local Taxes, Savings Bonds, State Tax / Douglas Freeman

Many people have savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself. You may wonder how the interest you earn is taxed. And if they reach final maturity, what action do you need to take to ensure there’s no loss of

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The kiddie tax: Does it affect your family?

Income Shifting, Kiddie Tax, Tax Savings / Douglas Freeman

Many people wonder how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through this approach, the “kiddie

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Putting your child on your business’s payroll for the summer may make more tax sense than ever

College children on The Payroll, Income Tax, Individual Income Tax, Kiddie Tax, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Working Parents / Douglas Freeman

If you own a business and have a child in high school or college, hiring him or her for the summer can provide a multitude of benefits, including tax savings. And hiring can make more sense than ever due to changes under the Tax Cuts and Jobs Act (TCJA). How it works. By shifting some

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