Shifting income to your dependent children can reduce your tax burden. However, special tax rules apply referred to as the “Kiddie Tax” that has changed several times over the past few years. Effective for tax years beginning after 2019, the Setting Every Community Up for Retirement Enhancement Act repeals the law change made by the Tax Cuts and Jobs Act.
To see the Kiddie tax resets for 2020 Click Here.
The shifting of income to dependent children is a great tax planning opportunity, but can be filled with traps. To find out if this can help you, Call or Email Us.
Phil is a Texas Certified Public Accountant who helps small businesses identify targeted goals, the weak links in their systems and financial management, as well as offering a comprehensive range of accounting, financial, tax, and management advisory services to businesses, individuals, and other organizations. This helps small businesses become more profitable and allows the owners to have more free time to enjoy life.
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