Unearned income, also known as passive income, is derived from sources other than employment or business operations and can act as a financial safety net during times of job loss or financial crisis.

The kiddie tax is a set of tax rules designed to prevent parents from reducing their tax burden by shifting investment income to their children. It applies to children under the age of 18, or ...

If your small business has foreign investments that provide interest income, you may be eligible for a foreign tax credit. In fact, any unearned income, such as dividends, rents, royalties and capital ...

The Tax Cuts and Jobs Act greatly simplified the Kiddie Tax. The tax was imposed in the Tax Reform Act of 1986 on unearned (investment) income of children. The idea was to end income splitting. That ...

Earned income refers to the money that you make from working, including salaries, wages, tips and professional fees. Unearned income, comparatively, is the money that you receive without performing ...

In 1986, a law was passed that prevented parents from shielding money from taxes by transferring investments to their children's names. Before then, the children's investments were taxed at the ...

Since 1987, taxpayers wanting to shift income to children subject to lower tax rates had to consider the kiddie tax when the children were under 14 years old. TIPRA, which became law in May 2006, made ...

If A, from the example in the article, had the same amount and type of taxable income in 2017 under the old kiddie tax rules and her parents had taxable income of $250,000 and they did not owe ...

Your taxable income is your federal tax liability based on both earned and unearned income received during the tax year. An individual’s taxable income is the amount of money they’ve received over the ...

Less than a week after the party-line passage of healthcare overhaul legislation, the U.S. Congress agreed on tens of billions of dollars of new taxes on “the rich” to help pay for it. President Obama ...