Learn about the kiddie tax and changes under the Tax Cuts and Jobs Act.
By Stephen Fishman, J.D. | READ THE ARTICLE ON NOLO.COM For a long time, a popular tax-saving strategy for high-income families was to funnel unearned income through their children to reduce their overall taxes. The IRS has never been thrilled with this practice, and adopted the "kiddie" tax in the 1980s to limit its effectiveness by taxing certain amounts of children's unearned income at a very high rate. The Tax Cuts and Jobs Act (TCJA), the massive tax reform law that took effect in 2018, did not do away with the kiddie tax; however, it simplified it and changed the tax rates children must pay on their unearned income.
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Janet Berry-Johnson | December 19, 2019 | Read the article on MoneyCrashers.com
Are you married? That seems like an easy question, but the answer can get complicated when it involves the filing status on your federal income tax return. For tax purposes, your marital status is determined as of the last day of the year. If you’re legally married on December 31, as far as the IRS is concerned, you were married for the entire year. If you’re married according to IRS rules, you have a decision to make: Should you and your spouse file jointly or separately? Kevin Mercadante December 24, 2019 | Source: Investor Junkie
Disappointed by this year's tax refund check? Thanks to the Tax Cuts and Jobs Act, the average refund for 2018 is $2,640, a 12% decrease from last year. However, don't despair. There's a way you can make your refund larger: by investing it. So before you run out and blow your hard-earned money on unnecessary items such as TVs and tattoos, we've got some ideas for safely and smartly growing it for a rainy day or your retirement. |
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CategoriesAuthorSam S. Cozzi, Jr. is a family man, for whom inspired him to be the man he is today. To provide for his family he followed his interests which led him towards his career as a tax professional. |