Only The Most Financially Savvy Can Pass This Monetary Terms Quiz

Karyn Bailey|General Knowledge|13 Jan 2020

What does a kiddie tax help prevent?

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A mother holds her son while posing for a photo.
Retry Correct Incorrect The kiddie tax applies to all children under the age of 19. It applies a low tax to investment and unearned income that exceeds a threshold to prevent parents from gifting stocks to their children for the sake of avoiding taxes.
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Andy Katz/Pacific Press/LightRocket via Getty Images
Andy Katz/Pacific Press/LightRocket via Getty Images

What does a kiddie tax help prevent?

  • Parents from taking advantage of a tax loophole
  • Hiring underage workers
  • Kids from not paying their taxes
  • Parents from paying taxes in full
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