Rethink transferring funds due to the “kiddie tax”
The ”kiddie tax” was first enacted by Congress as a means to keep parents or grandparents in high tax brackets from shielding their income by giving it to children within their family in lower tax brackets. Although this tax was a bit of a headache for some in prior years, it has since evolved due to the Tax Cuts and Jobs Act (TCJA) restructuring the tax rate.