Key Tax Rules

Kiddie Tax Rules​

The Kiddie Tax rules require the unearned income of a child or young adult be taxed at the greater of the child's or parents' marginal tax bracket once the unearned income exceeds $2,000. Under the Kiddie Tax rules, the first $1,000 in unearned income is not subject to tax. The next $1,000 of unearned income is taxed at the child's rate (typically 10%). Then, any unearned income of more than $2,000 is taxed at the parents' marginal rate. The Kiddie Tax rules apply to unearned income of the following:
 

• A child under age 18, at the end of each tax year

• An 18-year-old whose unearned income does not exceed one-half of his or her support

• A 19- to 23-year-old full-time student whose income does not exceed one-half of his or her support
   

Individual Dividend Rates



















































Capital Gains Tax Rates































































                                                            *The additional 3.8% Medicare surtax will apply to these taxpayers.

                                                            **The additional 3.8% Medicare surtax may apply to these taxpayers.



The information provided in these web pages is based on internal and external sources believed reliable; however, the accuracy and completeness of the information is not guaranteed and the figures may have changed since the time of printing. Examples are hypothetical illustrations and not intended to reflect the actual performance of any particular security. Please consult your tax advisor for questions relating to your individual situation.

​

Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount is subject to its own five-year holding period.