News & Press
What’s the matter with the Kiddie Tax today?
Anchin’s Tamir Dardashtian shares some alternatives: There are still opportunities to shift income within a family, according to Tamir Dardashtian, a tax principal at Top 100 Firm Anchin, Block & Anchin. “The reason the Kiddie Tax came into being is to discourage shifting income to kids,” he said. “You could say that the changes under tax reform benefit or hurt people depending on what rates the parents are paying at the time.”
Dardashtian posed the possibility of using a trust to receive dividends because administrative expenses like accounting fees are no longer deductible on the individual level, but they are at the trust level. Then the trust distributes the qualified dividends to the child, who picks them up on their return, and there is an additional benefit with the new, higher standard deduction on the child’s return.
Read the complete article by Accounting Today.
