Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Important Changes This Year

Income

Kiddie Tax

Modifications have been made to the tax based on earned income and the estates' and trusts' tax brackets. The child's tax rate is no longer affected by the tax situation of the parents or the unearned income of any siblings. Instead, all net unearned income over a threshold amount of $2,100 for 2018 is taxed using the brackets and rates for trusts and estates. This is a permanent change.