Sunday, February 1, 2009
KIDDIE TAX IS EXPANDED
* In case you missed it, starting in 2008, the kiddie tax is expanded to apply to a child who is age 18 or a full-time student age 19-23, if the child’s earned income for the year doesn’t exceed one-half of his or her support. Thus, for 2008, employing a child 18 or a full-time student age 19-23 could help to avoid the kiddie tax on his or her unearned income. Check with an accountant to find out how this might affect your family.