2022 Kiddie Tax Threshold
The 2022 Kiddie Tax Threshold is $1,150.
Effective 2022-01-01Source: Rev. Proc. 2021-45 (IRS)Verified 2026-08-29
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Unearned income threshold | $1,100 | $1,150 | +$50 (+4.5%) |
Who it applies to
Children under age 18 (and certain older students) who have unearned income such as interest, dividends, or capital gains, as described in IRC § 1(g).
What changed this year, and why
For 2022, the unearned income threshold used in the "Kiddie Tax" rules under Internal Revenue Code § 1(g) is $1,150.
Common questions
- What does the $1,150 Kiddie Tax threshold do?
- For 2022, the first $1,150 of a child's net unearned income is excluded from the Kiddie Tax. Unearned income above that threshold is taxed at the rates that apply to estates and trusts (or, under certain conditions, at the parent's rate).
- Can a parent report a child's income on the parent's own return instead?
- Yes, if the child's gross income for 2022 is more than $1,150 but below the upper limit set by the IRS, the parent may elect to include the child's income on the parent's return rather than file a separate return for the child.
The five conditions, and the three age tests
A child must file Form 8615 for 2022 if all five of the following conditions are met: the child had more than $2,300 of unearned income; the child is required to file a tax return; the child meets one of three age tests (under age 18 at the end of 2022, or age 18 without earned income exceeding half of support, or a full-time student age 19 to 23 without earned income exceeding half of support); at least one parent was alive at the end of 2022; and the child does not file a joint return. The term “child” includes legally adopted children and stepchildren, and the rules apply whether or not the child is a dependent. If neither parent was living at the end of the year, the rules do not apply.
Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,300 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 2022, b. Was age 18 at the end of 2022 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 2022 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 2022. 5. The child doesn’t file a joint return for 2022.
2022 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
What counts as unearned income
Unearned income is all income received for work actually performed (earned income), plus any other income that is not wages, salaries, tips, or other compensation for services. This includes interest, dividends, capital gains, rental and royalty income, pension and annuity payments, taxable scholarships and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable portion of social security benefits, and income received as a beneficiary of a trust. For 2022, the unearned income threshold is $1,150.
Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income).
2022 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, count support provided by the parent, the child, and others. However, a scholarship received by a child who is a full-time student is not considered support. For children age 18, and for full-time students age 19 to 23, the child must not have earned income that was more than half of the child's support to be subject to the kiddie tax.
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.
2022 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)
Reporting the child's income on the parent's return instead
Instead of filing Form 8615 for the child, a parent may elect to report the child's interest, ordinary dividends, and capital gain distributions on the parent's own return using Form 8814. If the parent makes this election, the child does not have to file a return or Form 8615. However, the federal income tax on the child's income may be higher if this election is made. For more details, see 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.
2022 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, unearned income over $2,300 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 $2,300, use Form 8615 to figure the child's tax. The purpose of this rule is to prevent families from shifting income to children in lower tax brackets.
For children under age 18 and certain older children described below in Who Must File, unearned income over $2,300 is taxed at the parent's rate if the parent's rate is higher than the child's.
2022 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. 2021-45 (IRS)
- Unearned income threshold
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 $1,150.