2019 Kiddie Tax Threshold
The 2019 Kiddie Tax Threshold is $1,100.
Effective 2019-01-01Source: Rev. Proc. 2018-57 (IRS)Verified 2026-08-29
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Unearned income threshold | $1,050 | $1,100 | +$50 (+4.8%) |
Who it applies to
Children subject to the kiddie tax (unearned income of minor children taxed at the parent's rate) under IRC § 1(g) for taxable years beginning in 2019.
What changed this year, and why
The unearned income threshold used to reduce net unearned income subject to the kiddie tax increased from $1,050 in 2018 to $1,100 in 2019.
Common questions
- What is the unearned income threshold for the kiddie tax in 2019?
- For 2019, the unearned income threshold used to calculate the kiddie tax is $1,100. This is the amount that reduces the net unearned income reported on a child's return that is subject to tax at the parent's rate. The same $1,100 threshold is used to determine whether a parent may elect to include a child's gross income on the parent's return. In 2018, the threshold was $1,050.
The five conditions, and the three age tests
Form 8615 must be filed when a child satisfies every one of five conditions. The child must have had more than $1,100 of unearned income and must be required to file a return. The child must also pass one of three age tests: being under age 18 at the close of 2019; being age 18 and having earned income that was no more than half of support; or being a full-time student aged 19 through 23 and having earned income that was no more than half of support. At least one parent must have been alive at the end of 2019, and the child must not file a joint return for the year. The rules cover legally adopted children and stepchildren, apply whether or not the child is a dependent, and do not apply at all if neither parent was living at year-end.
Form 8615 must be filed for anyone who meets all of the following conditions. 1. You had more than $2,200 of unearned income. 2. You are required to file a tax return. 3. You were either: a. Under age 18 at the end of 2019, b. Age 18 at the end of 2019 and didn’t have earned income that was more than half of your support, or c. A full-time student at least age 19 and under age 24 at the end of 2019 and didn’t have earned income that was more than half of your support. (Earned income is defined later. Support is defined below.) 4. At least one of your parents was alive at the end of 2019. 5. You don’t file a joint return for 2019.
2019 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
What counts as unearned income
For Form 8615 purposes, unearned income means all taxable income other than earned income. Earned income covers wages, tips, and other pay for personal services. Everything else falls into unearned income: taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on a W-2, unemployment compensation, alimony, and income received as a trust beneficiary. A child whose investment earnings total more than $1,100 for the year will generally trigger the kiddie tax rules and must file Form 8615 unless a parent makes the election described below to report the income on the parent's return.
For Form 8615, “unearned income” includes all taxable income other than earned income. Unearned income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust.
2019 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
The support test that decides whether an older child is caught
For children who are age 18 or who are full-time students aged 19 through 23 at year-end, the kiddie tax applies only if the child's earned income did not exceed half of the child's support. Support is defined broadly: it includes all amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. When computing support, amounts paid by the child, by the child's parents, and by others are all counted together. One important exception is that a scholarship received by a full-time student is not counted as support. This test matters because it determines whether an older student is subject to Form 8615. A student whose own part-time wages or other earned income cover more than half of his or her living costs is treated as self-supporting and escapes the kiddie tax rules entirely.
Support. Your support includes all amounts spent to provide you with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your support, count support provided by you, your parents, and others. However, a scholarship you received isn’t considered support if you’re a full-time student.
2019 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
Reporting the child's income on the parent's return instead
A parent can elect to report a child's interest, ordinary dividends, and capital gain distributions directly on the parent's own tax return rather than having the child file a separate return and Form 8615. The mechanism for this election is Form 8814, Parents' Election To Report Child's Interest and Dividends. If the parent makes this election, the child does not need to file a return or file Form 8615 at all. However, the instructions warn that the federal income tax on the child's income, including tax on qualified dividends and capital gain distributions, may be higher if the election is made. The election therefore trades administrative convenience for a potentially larger tax bill and must be evaluated carefully.
Your parent may be able to elect to report your interest, ordinary dividends, and capital gain distributions on his or her return. If your parent makes this election, you won’t have to file a return or Form 8615. However, the federal income tax on your income, including qualified dividends and capital gain distributions, may be higher if this election is made. For more details, see Form 8814, Parents’ Election To Report Child's Interest and Dividends.
2019 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
Why the child's own bracket is not the end of it
Form 8615 figures the tax on a child's net unearned income that exceeds $2,200 for 2019. The form applies to children under age 18 and, in certain situations, to older children who meet the age and support tests. The reason the child's own tax bracket is not the end of the story is that the Tax Cuts and Jobs Act of 2017 changed the computation. Unless the child or parent elects to calculate the tax using the parent's rate, all net unearned income above the $2,200 threshold is taxed at the brackets and rates that apply to estates and trusts. Because estate and trust tax brackets are much more compressed than individual brackets, income that would be taxed at a low rate on a child's own return can be pushed into a higher bracket, resulting in a larger tax bill.
The Tax Cuts and Jobs Act of 2017 modified the tax rates and brackets used to figure the tax on 2019 unearned income for certain children. Unless you elect to calculate your tax based on the tax rate of your parent, all net unearned income over a threshold amount of $2,200 for 2019 will be taxed using the brackets and rates for estates and trusts.
2019 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2018-57 (IRS)
- Unearned income threshold
For taxable years beginning in 2019, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,100.