KIDDIE TAX EXAMPLE: UNEARNED INCOME:
01.Core Concepts
TAX YEAR 2026 Gabby is 16 years old and a qualified dependent of her parents. She has unearned income of $5,100. For 2026, $2,400 of Gabby’s unearned income is taxed at her parents’ tax rates. 2026 Item $5,100 Unearned Income $1,350 Less: Standard Deduction $3,750 Taxable Income $1,350 Taxed at Child’s Rate $2,400 Taxed at Parent’s Rate