Back To School 2014: Saving & The Kiddie Tax

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I think one of the best things that you can teach your kids is the value of money. Obviously, parents are going to disagree about the specifics but the basics – what it is, how you use it, the importance of spending or saving it wisely – are pretty universal. When it comes to kids saving and earning money, it may also be time to talk kiddie tax. The kiddie tax is the tax imposed on kids at the parents’ tax rate and not at the lower rate of the child when income reaches certain thresholds. The rules can be tricky and depend on a number of factors, including the age of the children, as well as the amount and source of the income.