The Kiddie Tax or How Children Are Taxed Children are subject to
income taxes just like their parents. However, there are some
special rules that apply, and some of them can get complicated.
This article provides some general information, but you may want
to consult your tax advisor to better understand how your
children are being taxed. The General Rule Generally, children
are treated as a separate taxpayer and their income is taxed at
the same marginal rates as their parents. The tax table used to
calculate their tax is the single filer table. The lowest rate
is 10% and the rates rise to 39.6% (for 2013) for the highest
levels of income. Rules for 2013 Returns These rules will apply
to children under the age of 18, 18 year olds with earned income
less than half of their support, and 19 to 23 year old students
with earned income less than half of their support If a child
has a job, their earned income is taxed regularly. In fact, the
first $6,100 is usually tax free (by taking advantage of the
standard deduc