In 1986, a tax law was introduced to block parents from transferring investments to their children as a technique to lower their taxes. This law, commonly known as the kiddie tax, ensures that this unearned income is taxed at a parent’s, usually higher, tax rate. But there is still a tax planning opportunity. The term “kiddie tax” was introduced by the Tax Reform Act of 1986. The IRS introduced this …Read More
Tag Archives: children
Fund Your Retirement or Your Child's College?
With rapidly increasing costs in both health care and in college tuition, deciding which is more important can be a real dilemma. Here are some thoughts. As our students prepare to head back to school, many families face the difficult decision to save for retirement or use those funds to pay for their children’s college education. The dilemma With student loan amounts in the trillions of dollars, our kids are …Read More