Breta Grumbois photo
Fibre Financial Group Retirement and Investment Services logo

Breta Grumbois, CRPC®

Vice President, Wealth Management

 

Fibre Financial Group

Retirement and Investment Services

Located at Fibre Federal Credit Union

822 Commerce Avenue, Longview, WA 98632

 

Phone:  360-414-4223

 

Email: bgrumbois@fibrecu.com

July/August 2024

Kiddie Tax 2024

Confident young asian businesswoman working in office with laptop and graph papers to save, analyse, calculate, income, turnover, taxes. Partnership in real estate business at desk in office.

If your child has investment or other unearned income above a certain threshold, that income may be subject to the kiddie tax.


For 2024, the first $1,300 of a child’s unearned income is tax-free. The next $1,300 of unearned income is taxed at your child’s tax rate. Any additional earnings above the $2,600 threshold are taxed at the child’s or parents’ tax rate, whichever is greater.


What Qualifies as Unearned Income?
A child’s unearned income may include:
  • Taxable interest

  • Dividends

  • Capital gains

  • Taxable scholarships

  • Income produced by gifts from grandparents

  • Income from custodial accounts


Exceptions
The kiddie tax does not apply to children who spend their own earned income for more than half the cost of their support. Children who are married and file a joint return are also not subject to the tax. Your tax professional can provide more information.

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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Fibre Federal Credit Union and Fibre Financial Group Retirement and Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Fibre Financial Group Retirement and Investment Services, and may also be employees of Fibre Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Fibre Federal Credit Union or Fibre Financial Group Retirement and Investment Services. Securities and insurance offered through LPL or its affiliates are:

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