2020 Kiddie Tax Threshold
The 2020 Kiddie Tax Threshold is $1,100.
Effective 2020-01-01Source: Rev. Proc. 2019-44 (IRS)Verified 2026-08-29
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Unearned income threshold | $1,100 | $1,100 | +$0 (+0.0%) |
Who it applies to
Children subject to the 'kiddie tax' under Internal Revenue Code § 1(g) and their parents for taxable years beginning in 2020.
What changed this year, and why
For taxable years beginning in 2020, the unearned income threshold under § 1(g)(4)(A)(ii)(I) - the amount used to reduce the net unearned income reported on a child's return that is subject to the 'kiddie tax' - is $1,100. The same $1,100 amount is used for purposes of § 1(g)(7), which determines whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the kiddie tax.
Common questions
- What is the kiddie tax unearned income threshold for 2020?
- The threshold is $1,100. This amount reduces the net unearned income reported on the child's return that is subject to the kiddie tax. The same amount is also used to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the kiddie tax.
The five conditions, and the three age tests
A child must file Form 8615 if all five conditions are met: the child had more than $2,200 of unearned income; the child is required to file a tax return; the child meets one of three age tests (was under age 18 at the end of 2020, was age 18 and did not have earned income that was more than half of the child's support, or was a full-time student at least age 19 and under age 24 and did not have earned income that was more than half of the child's support); at least one of the child's parents was alive at the end of 2020; and the child does not file a joint return for 2020. The term "child" includes a legally adopted child and a stepchild, and the rules apply whether or not the child is a dependent. The rules do not apply if neither of the child's parents were living at the end of the year.
Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,200 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2020, b. Was age 18 at the end of 2020 and didn’t have earned income that was more than half of the child's support, or c. Was a full-time student at least age 19 and under age 24 at the end of 2020 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.) 4. At least one of the child's parents was alive at the end of 2020. 5. The child doesn’t file a joint return for 2020.
2020 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
What counts as unearned income
Unearned income means all taxable income other than earned income for purposes of Form 8615. This includes 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 Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust. Earned income, by contrast, consists of wages, tips, and other payments for personal services. The $1,100 threshold is the base amount of unearned income that is taxed at the child's own rate; only the unearned income above the applicable threshold is subject to the parent's rate through Form 8615.
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.
2020 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
The support test that decides whether an older child is caught
Support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To determine the child's total support, you count support provided by you, the child, and others. A scholarship received by a full-time student does not count as support. This matters for children who are age 18 or who are full-time students age 19 to 23: they are subject to Form 8615 only if their earned income was not more than half of their own support for the year.
Support. Your support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your child’s support, count support provided by you, your child, and others. However, a scholarship received by your child isn’t considered support if your child is a full-time student.
2020 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
Reporting the child's income on the parent's return instead
The parent of a child subject to the kiddie tax may be able to elect to report the child's interest, ordinary dividends, and capital gain distributions on the parent's own return instead of filing Form 8615 for the child. If the parent makes this election, the child does not have to file a separate return or Form 8615. However, the federal income tax on the child's income, including qualified dividends and capital gain distributions, may be higher if this election is made. Details of the election, including its requirements and limitations, are found in Form 8814, Parents' Election To Report Child's Interest and Dividends.
The parent may be able to elect to report the child’s interest, ordinary dividends, and capital gain distributions on the parent’s return. If the parent makes this election, the child won’t have to file a return or Form 8615. However, the federal income tax on the child’s 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.
2020 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
For children under age 18 and certain older children who meet the Who Must File conditions, unearned income over $2,200 is taxed at the parent's rate if the parent's rate is higher than the child's. This is the central purpose of Form 8615: even though the child may be in a lower tax bracket on their own return, the portion of unearned income above $2,200 is effectively taxed at whichever is higher - the child's rate or the parent's rate. If the child's unearned income exceeds $2,200, the form is used to compute the tax. The $1,100 threshold is the standard deduction component applied before the excess is determined.
For children under age 18 and certain older children described below in Who Must File, unearned income over $2,200 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,200, use Form 8615 to figure the child's tax.
2020 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. 2019-44 (IRS)
- Unearned income threshold
For taxable years beginning in 2020, 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.