What is the kiddie tax unearned income amount for 2025?

For taxable years beginning in 2025 the amount in § 1(g) used to reduce the net unearned income reported on the child's return that is subject to the kiddie tax is $1,350. Rev. Proc. 2024-40 states it as an inflation-adjusted item. It is a reduction applied to unearned income, not a cut-off that removes a child from § 1(g) altogether.

What does the $1,350 kiddie tax amount actually do?

It reduces the net unearned income reported on the child's return that is subject to the kiddie tax. Rev. Proc. 2024-40 describes the figure that way rather than as an exemption or a filing trigger. The reduction is applied to unearned income specifically; the revenue procedure states no equivalent figure for the child's earned income under § 1(g).

Can a parent report a child's income on their own return in 2025?

Rev. Proc. 2024-40 states that the same $1,350 is used for purposes of § 1(g) 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. So the figure does double duty: it sizes the reduction on the child's own return and it sets the bottom of the income band in which the parental election can be considered.

What income range lets a parent make the kiddie tax election?

The revenue procedure gives one requirement as an example: the child's gross income must be more than the amount referenced in § 1(g), which is $1,350 for 2025, but less than a multiple of that amount which § 1(g) itself specifies. Rev. Proc. 2024-40 sets out only that requirement; the other conditions on the election live in the Code section rather than in the revenue procedure.

Is the kiddie tax amount the same as the dependent standard deduction?

Rev. Proc. 2024-40 says the $1,350 kiddie tax amount is the same as the amount provided in § 63, as adjusted for inflation. In the standard deduction item, the deduction for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of that same figure or the sum of the individual's earned income and a further amount the procedure states. The two provisions are indexed together.

Does the kiddie tax affect the alternative minimum tax?

Yes, and Rev. Proc. 2024-40 handles it as a separate item. For a child to whom the § 1(g) kiddie tax applies, the exemption amount under § 55 and § 59(j) for alternative minimum tax purposes may not exceed the sum of the child's earned income for the taxable year plus a fixed amount that the revenue procedure states in that item. That AMT amount is a different figure from the $1,350 unearned income reduction.

Which tax year does the $1,350 kiddie tax amount apply to?

Rev. Proc. 2024-40 states it for taxable years beginning in 2025, and the general rule in the procedure's effective date section applies it to taxable years beginning in 2025. Unearned income of minor children is not one of the items the procedure routes to its calendar year rule instead. The figure therefore attaches to the child's taxable year, not to the date on which the unearned income was received.

Where does the $1,350 kiddie tax figure come from?

It is the amount in § 1(g) of the Internal Revenue Code, as adjusted for inflation. Rev. Proc. 2024-40 publishes the adjusted figure for 2025 in its unearned income of minor children item, and the procedure says the inflation-adjusted items it sets out are generally determined by reference to § 1(f). It is a statutory amount indexed, not a number the IRS picks each year.

2025 Kiddie Tax Threshold

Name: 2025 Kiddie Tax Threshold
Creator: IRS

For 2025, the Kiddie Tax Threshold figures are $1,350 (Unearned income reduction amount) and $2,700 (Unearned income filing trigger).

Unearned income reduction amount$1,350

Unearned income filing trigger$2,700

Effective 2025-01-01Source: Rev. Proc. 2024-40 (IRS)Verified 2026-09-03

Unearned income filing triggerSource: 2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)Verified 2026-09-03

Compared with 2024

Item	2024	2025	Change
Unearned income reduction amount	$1,300	$1,350	+$50 (+3.8%)
Unearned income filing trigger	$2,600	$2,700	+$100 (+3.8%)

Who it applies to

The amount is applied on the return of a child whose unearned income falls under the § 1(g) kiddie tax for a taxable year beginning in 2025. It works as a reduction against net unearned income rather than as an exemption from the rule, so the child is inside the kiddie tax regime and the figure only sets how much unearned income escapes it. The same figure also matters to a parent, because the revenue procedure uses it to frame the gross income range in which a parent may elect to report the child's income on the parent's return. Rev. Proc. 2024-40 sets the amount and does not restate which children § 1(g) reaches.

What changed this year, and why

For taxable years beginning in 2025, Rev. Proc. 2024-40 sets at $1,350 the amount in § 1(g) that is used to reduce the net unearned income reported on a child's return that is subject to the kiddie tax. The revenue procedure states that this $1,350 is the same as the amount provided in § 63 for a dependent's standard deduction, as adjusted for inflation, and that the same $1,350 is used under § 1(g) to determine whether a parent may elect to include a child's gross income in the parent's own gross income and to calculate the kiddie tax. The figure is an inflation-adjusted item generally determined by reference to § 1(f).

Common questions

What is the kiddie tax unearned income amount for 2025?: For taxable years beginning in 2025 the amount in § 1(g) used to reduce the net unearned income reported on the child's return that is subject to the kiddie tax is $1,350. Rev. Proc. 2024-40 states it as an inflation-adjusted item. It is a reduction applied to unearned income, not a cut-off that removes a child from § 1(g) altogether.
What does the $1,350 kiddie tax amount actually do?: It reduces the net unearned income reported on the child's return that is subject to the kiddie tax. Rev. Proc. 2024-40 describes the figure that way rather than as an exemption or a filing trigger. The reduction is applied to unearned income specifically; the revenue procedure states no equivalent figure for the child's earned income under § 1(g).
Can a parent report a child's income on their own return in 2025?: Rev. Proc. 2024-40 states that the same $1,350 is used for purposes of § 1(g) 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. So the figure does double duty: it sizes the reduction on the child's own return and it sets the bottom of the income band in which the parental election can be considered.
What income range lets a parent make the kiddie tax election?: The revenue procedure gives one requirement as an example: the child's gross income must be more than the amount referenced in § 1(g), which is $1,350 for 2025, but less than a multiple of that amount which § 1(g) itself specifies. Rev. Proc. 2024-40 sets out only that requirement; the other conditions on the election live in the Code section rather than in the revenue procedure.
Is the kiddie tax amount the same as the dependent standard deduction?: Rev. Proc. 2024-40 says the $1,350 kiddie tax amount is the same as the amount provided in § 63, as adjusted for inflation. In the standard deduction item, the deduction for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of that same figure or the sum of the individual's earned income and a further amount the procedure states. The two provisions are indexed together.
Does the kiddie tax affect the alternative minimum tax?: Yes, and Rev. Proc. 2024-40 handles it as a separate item. For a child to whom the § 1(g) kiddie tax applies, the exemption amount under § 55 and § 59(j) for alternative minimum tax purposes may not exceed the sum of the child's earned income for the taxable year plus a fixed amount that the revenue procedure states in that item. That AMT amount is a different figure from the $1,350 unearned income reduction.
Which tax year does the $1,350 kiddie tax amount apply to?: Rev. Proc. 2024-40 states it for taxable years beginning in 2025, and the general rule in the procedure's effective date section applies it to taxable years beginning in 2025. Unearned income of minor children is not one of the items the procedure routes to its calendar year rule instead. The figure therefore attaches to the child's taxable year, not to the date on which the unearned income was received.
Where does the $1,350 kiddie tax figure come from?: It is the amount in § 1(g) of the Internal Revenue Code, as adjusted for inflation. Rev. Proc. 2024-40 publishes the adjusted figure for 2025 in its unearned income of minor children item, and the procedure says the inflation-adjusted items it sets out are generally determined by reference to § 1(f). It is a statutory amount indexed, not a number the IRS picks each year.

Every amount on this page is a published figure rather than yours. The Kiddie tax threshold headroom takes the number you enter and works it out against them, showing which published figure it used.

The five conditions, and the three age tests

Form 8615 must be filed for a child only when every one of the five listed conditions is satisfied. First, the child's unearned income must exceed the $2,700 threshold for 2025. Second, the child must otherwise be required to file a federal tax return. Third, the child must meet at least one of three age tests: (a) be under age 18 at the end of 2025, (b) be age 18 at year-end and not have earned income exceeding half of the child's support, or (c) be a full-time student at least age 19 but under age 24 at year-end and also not have earned income exceeding half of support. Fourth, at least one parent must have been alive at the close of 2025. Fifth, the child must not file a joint return for the year. The term "child" covers a legally adopted child and a stepchild, and the rules apply whether or not the child is claimed as a dependent. If neither parent was living at year-end, the kiddie-tax rules do not apply at all.

Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,700 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 2025, b. Was age 18 at the end of 2025 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 2025 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 2025. 5. The child doesn’t file a joint return for 2025.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

What counts as unearned income

For the 2025 tax year, the IRS defines unearned income as all income a child receives other than pay for work actually performed - that is, anything that is not wages, salaries, or similar earned income. This category covers a wide range of passive or investment-type receipts: taxable interest, ordinary dividends, capital gains and capital gain distributions, rents, royalties, pension and annuity income, taxable scholarship and fellowship grants that are not reported on a Form W-2, unemployment compensation, alimony, the taxable portion of social security and pension payments, and any income (other than earned income) the child receives as the beneficiary of a trust. When a child under age 18 - or certain older students or disabled individuals - has more than $2,700 of this kind of income in 2025, the amount above that threshold may be taxed at the parent's rate on Form 8615, if doing so produces a higher tax than the child's own rate. The first $1,350 of unearned income is effectively sheltered by a reduction amount before the excess is measured against the $2,700 filing threshold.

Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income). It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable part of social security and pension payments, and income (other than earned income) received as the beneficiary of a trust.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

The support test that decides whether an older child is caught

The support test applies to children who are at least age 18 but under age 24. For these children, the kiddie tax applies only if the child did not have earned income that was more than half of the child's support. 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 a child's total support, you count support provided by you, the child, and others. A scholarship received by a child who is a full-time student is not counted as support. This means a working full-time college student who earns enough to cover more than half of their own living expenses is exempt from the kiddie tax, even if their unearned income exceeds the $1,350 threshold. The support test therefore distinguishes between children who are still financially dependent and those who are largely self-supporting through their own earned income. If the child's earned income exceeds half of support, the child does not meet the age test and the kiddie tax rules do not apply.

Was age 18 at the end of 2025 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 2025 and didn’t have earned income that was more than half of the child's support.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

Reporting the child's income on the parent's return instead

Under certain conditions, a parent may elect to report the child's interest, ordinary dividends, and capital gain distributions on the parent's own tax return instead of filing a separate return for the child. 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, including qualified dividends and capital gain distributions, may be higher if this election is made. The election is made using Form 8814, Parents' Election To Report Child's Interest and Dividends. This option can simplify filing by eliminating the need for a separate return, but parents should weigh the potential increase in tax against the convenience. The election covers only interest, ordinary dividends, and capital gain distributions; other types of unearned income are not eligible. Once the election is made, the child's income is effectively added to the parent's return and taxed at the parent's rates.

Tip: 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.
2025 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 described in the Who Must File rules, unearned income over $2,700 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 $2,700, use Form 8615 to figure the child's tax. The form does not simply apply the child's own tax bracket to all of the child's unearned income. Instead, the child's tax is calculated by adding the child's net unearned income to the parent's taxable income, determining the tax on that combined amount at the parent's rates, and then isolating the incremental tax attributable to the child's income. This tentative tax is compared to the tax the child would owe at the child's own rates, and the child pays the higher of the two amounts. The result is that a child with substantial investment income may owe tax at the parent's marginal rate rather than the child's lower rate, which is the core purpose of the kiddie tax rules.

Purpose of Form For children under age 18 and certain older children described below in Who Must File, unearned income over $2,700 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 $2,700, use Form 8615 to figure the child's tax.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

A January 1 birthday counts the child a year older

Under the federal kiddie tax rules for 2025, a child born on January 1 is treated as having reached the next age on the last day of the prior tax year. This means a child born on January 1, 2008 is considered 18 at the end of 2025; one born on January 1, 2007 is considered 19; and one born on January 1, 2002 is considered 24. The IRS uses this rule to determine whether a child meets the age conditions that trigger the kiddie tax. A child considered 18 must not have earned income exceeding half of their support. A child considered 19 must be a full-time student who also did not have earned income exceeding half of their support. A child considered 24 is not subject to the kiddie tax at all and does not use Form 8615.

Certain January 1 birthdays. Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under Who Must File, earlier. IF you were born on... THEN, at the end of 2025, you are considered to be... January 1, 2008 18* January 1, 2007 19** January 1, 2002 24*** * This child isn't under age 18. The child meets condition 3 only if the child didn't have earned income that was more than half of the child's support. ** This child meets condition 3 only if the child was a full-time student who didn't have earned income that was more than half of the child's support. *** Don’t use Form 8615 for this child.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

A capital loss bigger than the offset does not just disappear

Under the federal Kiddie Tax rules for 2025, the $1,350 unearned income threshold is calculated after accounting for capital losses. Capital losses first offset capital gains. If losses exceed gains, the excess reduces other unearned income - interest, dividends, and similar items - by up to $3,000. This means a child with more than $3,000 in net capital losses does not lose the benefit of the excess right away; the amount beyond $3,000 carries forward to the next tax year, where it can again be applied against future unearned income. The carryforward ensures that a large loss in one year continues to shelter income in later years rather than vanishing unused.

Any difference over $3,000 is carried to the next year.
2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

If a parent's income later changes, the child's tax has to be refigured

Under the federal Kiddie Tax rules for 2025, if the parents' tax return is later amended or otherwise adjusted after the child's return has already been filed, the child's tax must be recomputed using the new figures. The same applies if the net unearned income of any other child for whom the parent filed Form 8615 changes, because each child's Kiddie Tax depends on the parent's overall tax situation. If the recomputation changes how much tax the child owes, the child must file Form 1040-X to reflect the correction. This rule prevents a child from keeping an incorrect Kiddie Tax in place once the parents' income - which is the foundation of the calculation - has been revised.

If the parents’ income changes after the child’s return is filed, the child’s tax must be refigured using the adjusted amounts.
2025 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. 2024-40 (IRS)

Unearned income reduction amount: 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 $1,350.

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2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (IRS)

Unearned income filing trigger: 1. The child had more than $2,700 of unearned income.

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