capital tax gain on kids subject kiddie tax
until they reach age of 21 or self indepedent.
How to Calculate the Kiddie Tax for Tax Year 2023 (Filed in 2024) The first $1,250 of a child's unearned income is tax-free, and the next $1,250 is subject to the child's tax rate. Any additional earnings above $2,500 are taxed at the child's parents' marginal tax rate.