2007 Year End Tax Tips - Tip #4

Thursday, November 15, 2007

Last Chance Moves to Dance Around the "Kiddie Tax" Crackdown

As the end of the year nears, NBR offers some pointers that could help you lighten your tax load come April. Tonight, our tax guru, Kevin McCormally of Kiplinger's Personal Finance, tells you how to take advantage of changes in taxes that impact a child's investment income.

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External Links/Articles*

• Government Printing Office (GPO) (PDF Document)
  This links to a copy of the Tax Increase Prevention and Reconciliation Act of 2005 (House Resolution 4297). This is the act that resulted in the changes to the Kiddie Tax that Kevin McCormally discusses in his Tax Tip.
• Internal Revenue Service (IRS) (PDF Document)
  This links to a copy of IRS form 8615 for tax year 2006. It is titled, "Tax for Children Under Age 18 With Investment Income of More Than $1,700." The IRS will eventually update the form for the current tax season.
• Kiplinger.com
  Kevin McCormally is editorial director of Kiplinger's Personal Finance. Kiplinger.com is that publication's website. This links to a June 6, 2007 article titled, "Congress Closes Kiddie-Tax Loophole."

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.