Kid Tax

Definition: A tax applied to any income a child under the age of 14 receives in excess of $1200.  The income earned over this level is taxed at the parent's rate.

TeenAnalyst Advice: If a child under the age of 14 earns over $1200/year in income, they are obligated to pay taxes on it.  However, since kids can't work at this age, most of the time this income comes from dividends, bond interest, or a hobby business they might own.

Thank the government for this tax.