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Personal Investments • Can someone explain “kiddie tax”

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So i decided to open my 3 kids custodial brokerage accounts. However, in the process of getting all my ducks in a row i came across something called kiddie tax. From what i read, if im reading it correctly, my kids would have to pay tax on their earnings every year, whether if theyre all reinvested or not at my tax rate ? Is this accurate? Obviously id pay the taxes for them, but i was under the assumption as long as you dont withdraw any money there are no tax implications

Statistics: Posted by sv8526 — Thu Aug 22, 2024 5:58 am — Replies 8 — Views 722



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