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LSDefine

Simple English definitions for legal terms

kiddie tax

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A quick definition of kiddie tax:

Term: Kiddie Tax

Definition: The Kiddie Tax is a type of tax that applies to children's unearned income, such as investment income. It is designed to prevent parents from shifting their investment income to their children to take advantage of lower tax rates. Basically, if you're a kid and you make money from investments, you might have to pay some extra taxes on it.

A more thorough explanation:

Kiddie tax is a type of tax that is imposed on the unearned income of children under the age of 18. This tax was introduced to prevent parents from transferring their investment income to their children to avoid paying higher taxes.

  • If a child receives $1,000 in interest income from a savings account, the kiddie tax may apply to that income.
  • If a parent transfers stocks to their child and the child earns a profit from selling those stocks, the kiddie tax may apply to that profit.

These examples illustrate how the kiddie tax applies to unearned income that is generated by children. The purpose of this tax is to ensure that parents cannot use their children's lower tax rates to avoid paying higher taxes on their own investment income.

kickback | kidnap

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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