Kiddie Tax: Threshold, Form 8615 and Calculator
The kiddie tax is the rule that a child’s unearned income over $2,700 is taxed at the parent’s rate if the parent’s rate is higher than the child’s; the child figures it on Form 8615, and the IRS instructions cover children under 18 and certain older children. The $2,700 is the Form 8615 line 2 amount in the final 2025 form, and the IRS early-release draft Form 8615 for 2026 (“DRAFT—NOT FOR FILING”) also prints $2,700, while Rev. Proc. 2025-32 sets the underlying amount at $1,350 for 2026.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
Who the kiddie tax covers
The 2025 Instructions for Form 8615 state the rule and the conditions for filing the form:
“For children under age 18 and certain older children described below in Who Must File, unearned income over $2,700 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,700, use Form 8615 to figure the child's tax.”
“Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,700 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2025, b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.) 4. At least one of the child’s parents was alive at the end of 2025. 5. The child doesn’t file a joint return for 2025.”
“For these rules, the term “child” includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent. These rules don’t apply if neither of the child’s parents were living at the end of the year.”
The instructions define two of the terms used in those conditions:
“Support. Your support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your child’s support, count support provided by you, your child, and others. However, a scholarship received by your child isn’t considered support if your child is a full-time student.”
“Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income). It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable part of social security and pension payments, and income (other than earned income) received as the beneficiary of a trust.”
The IRS early-release draft instructions for 2026 (cover page “Caution: DRAFT—NOT FOR FILING”) print the rule and the conditions with 2026 dates:
“For children under age 18 and certain older children described below under Who Must File, unearned income over $2,700 is taxed at the parent’s rate if the parent’s rate is higher than the child’s. If the child’s unearned income is more than $2,700, use Form 8615 to figure the child’s tax.”
“Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,700 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2026, b. Was age 18 at the end of 2026 and didn’t have earned income that was more than half of the child’s support, or c. Was a full-time student at least age 19 and under age 24 at the end of 2026 and didn’t have earned income that was more than half of the child’s support. (Earned income is defined later. Support is defined below.) 4. At least one of the child’s parents was alive at the end of 2026. 5. The child doesn’t file a joint return for 2026.”
IRS Tax Topic 553 says to use Form 8615 for the tax on a child’s unearned income:
“Use Form 8615
[…]
to figure the child's tax on unearned income over $2,700 if the child is under age 18, and in certain situations if the child is older (see below).”
Amounts by tax year
Each amount below is shown with its tax year and document. The 2026 Form 8615 figure comes from an IRS early-release draft (cover page “Caution: DRAFT—NOT FOR FILING”), so it can change before the final form; the Rev. Proc. 2025-32 figures are final.
| Item | Tax year 2025 | Tax year 2026 |
|---|---|---|
| Form 8615 line 2, child did not itemize | $2,700 (Form 8615 (2025)) | $2,700 (draft Form 8615 (2026), DRAFT—NOT FOR FILING) |
| Child’s unearned income must be more than | $2,700 (Instructions for Form 8615, 2025) | $2,700 (draft Instructions for Form 8615, 2026, DRAFT—NOT FOR FILING) |
| Section 1(g)(4)(A)(ii)(I) amount | $1,350 (Rev. Proc. 2024-40) | $1,350 (Rev. Proc. 2025-32, final) |
| Form 8814 election: child’s gross income more than | $1,350 (Rev. Proc. 2024-40) | $1,350 (Rev. Proc. 2025-32, final) |
| Form 8814 election: child’s gross income less than | $13,500 (Rev. Proc. 2024-40) | $13,500 (Rev. Proc. 2025-32, final) |
| Basic standard deduction, single (used by the calculator) | $15,750 (Rev. Proc. 2025-32, section 2.08) | $16,100 (Rev. Proc. 2025-32, final) |
| Dependent standard deduction cannot exceed the greater of | $1,350 or $450 plus earned income (Rev. Proc. 2024-40) | $1,350 or $450 plus earned income (Rev. Proc. 2025-32, final) |
The two Revenue Procedures say this about the $1,350 amount and the parental election:
“For taxable years beginning in 2025, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child’s return that is subject to the “kiddie tax,” is $1,350. This $1,350 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation.”
“For taxable years beginning in 2026, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,350. This $1,350 amount is the same as the amount provided in § 63(c)(5)(A), as adjusted for inflation. The same $1,350 amount is used for purposes of § 1(g)(7) to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie tax." For example, one of the requirements for the parental election is that a child's gross income is more than the amount referred to in § 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child's gross income for 2026 must be more than $1,350 but less than $13,500.”
For a child who itemizes, the instructions replace the $2,700 on line 2 with a larger figure when directly connected itemized deductions are big enough:
“If the child doesn't itemize deductions on Schedule A (Form 1040), enter $2,700 on line 2. If the child itemizes deductions, enter on line 2 the larger of: 1. $1,350 plus the portion of the amount on Schedule A (Form 1040), line 17 (or Schedule A (Form 1040-NR), line 8), that is directly connected with the production of the unearned income on Form 8615, line 1; or 2. $2,700.”
IRS documents that differ
One IRS page words the threshold differently from the other documents. The About Form 8615 page (page last reviewed April 29, 2026) uses a different amount, while the 2025 Instructions for Form 8615 (dated October 22, 2025), the 2025 Form 8615 and Tax Topic 553 (page last reviewed September 24, 2026) all use $2,700; this site follows the form and instructions:
“Use this form to figure your tax on unearned income over $2,100 if you are under age 18, and in certain situations if you are older.”
The same About page also has a note about the publication that used to cover children’s income:
“Publication 929, Tax Rules for Children and Dependents will no longer be revised -- 21-JUN-2023”
How the tax is figured, line by line
Form 8615 has three parts: the child’s net unearned income (lines 1 to 5), a tentative tax at the parent’s rate (lines 6 to 13), and the child’s tax (lines 14 to 18). Every line below reads the same way in the IRS early-release draft Form 8615 for 2026 (cover page “Caution: DRAFT—NOT FOR FILING”).
| Line | What the form says |
|---|---|
| 1 | Enter the child’s unearned income. See instructions |
| 2 | If the child did not itemize deductions on Schedule A (Form 1040) or Schedule A (Form 1040-NR), enter $2,700. Otherwise, see instructions |
| 3 | Subtract line 2 from line 1. If zero or less, stop; do not complete the rest of this form but do attach it to the child’s return. |
| 4 | Enter the child’s taxable income from Form 1040 or 1040-NR, line 15. If the child files Form 2555, see the instructions |
| 5 | Enter the smaller of line 3 or line 4. If zero, stop; do not complete the rest of this form but do attach it to the child’s return |
| 6 | Enter the parent’s taxable income from Form 1040 or 1040-NR, line 15. If zero or less, enter -0-. If the parent files Form 2555, see the instructions |
| 7 | Enter the total, if any, from Forms 8615, line 5, of all other children of the parent named above. Do not include the amount from line 5 above |
| 8 | Add lines 5, 6, and 7. See instructions |
| 9 | Enter the tax on the amount on line 8 based on the parent’s filing status above. See instructions. If the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J (Form 1040) is used to figure the tax, check here |
| 10 | Enter the parent’s tax from Form 1040 or 1040-NR, line 16, minus any alternative minimum tax. Do not include any tax from Form 4972 or Form 8814, or any tax from the recapture of an education credit. If the parent files Form 2555, see the instructions. If the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J (Form 1040) was used to figure the tax, check here |
| 11 | Subtract line 10 from line 9 and enter the result. If line 7 is blank, also enter this amount on line 13 and go to Part III |
| 12a | Add lines 5 and 7 |
| 12b | Divide line 5 by line 12a. Enter the result as a decimal (rounded to at least three places) |
| 13 | Multiply line 11 by line 12b |
| 14 | Subtract line 5 from line 4 |
| 15 | Enter the tax on the amount on line 14 based on the child’s filing status. See instructions. If the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J (Form 1040) is used to figure the tax, check here |
| 16 | Add lines 13 and 15 |
| 17 | Enter the tax on the amount on line 4 based on the child’s filing status. See instructions. If the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J (Form 1040) is used to figure the tax, check here |
| 18 | Enter the larger of line 16 or line 17 here and on the child’s Form 1040 or 1040-NR, line 16. If the child files Form 2555, see the instructions |
The instructions explain lines 2, 3 and 5, the tentative tax, and the final step:
“Subtract line 2 from line 1 and enter the result on this line. If zero or less, don’t complete the rest of the form. However, you must still attach Form 8615 to your child’s tax return.”
“A child’s net unearned income can’t be more than their taxable income. Enter on Form 8615, line 5, the smaller of line 3 or line 4.”
“The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it.”
“The final step in figuring the child’s tax is to determine the larger of: 1. The total of: a. The child’s share of the tentative tax based on the parent's tax rate, plus b. The tax on the child’s taxable income in excess of net unearned income, figured at the child’s tax rate, or 2. The tax on the child’s taxable income, figured at the child’s tax rate. This is the child’s tax.”
They also say which parent’s return is used:
“If a child’s parents are married to each other and file a joint return, use the joint return to complete Form 8615.”
“Parents are married. If the child's parents file separate returns, use the return of the parent with the greater taxable income.”
Parents’ election: Form 8814
Instead of a separate return for the child, parents may elect to report the child’s interest and dividends on their own return. The 2025 instructions list the child conditions and warn about the rate:
“Use this form if you elect to report your child’s income on your return. If you do, your child will not have to file a return. You can make this election if your child meets all of the following conditions.
The child was under age 19 (or under age 24 if a full-time student) at the end of 2025. Full-time student is defined below.
The child’s only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.
The child’s gross income for 2025 was less than $13,500.
The child is required to file a 2025 return.
The child does not file a joint return for 2025.
There were no estimated tax payments for the child for 2025 (including any overpayment of tax from his or her 2024 return applied to 2025 estimated tax).
There was no federal income tax withheld from the child’s income.
You must also qualify. See Parents who qualify to make the election, below.”
“Rate may be higher. If your child received qualified dividends or capital gain distributions, you may pay up to $135 more tax if you make this election instead of filing a separate tax return for the child. This is because the tax rate on the child’s income between $1,350 and $2,700 is 10% if you make this election. However, if you file a separate return for the child, the tax rate may be as low as 0% because of the preferential tax rates for qualified dividends and capital gain distributions.”
| Line | What the form says |
|---|---|
| 4 | Add lines 1a, 2a, and 3. If the total is $2,700 or less, skip lines 5 through 12 and go to line 13. If the total is $13,500 or more, do not file this form. Your child must file his or her own return to report the income |
| 6 | Subtract line 5 from line 4 |
| 14 | Subtract line 13 from line 4. If the result is zero or less, enter -0- |
| 15 | Tax. Is the amount on line 14 less than $1,350? No. Enter $135 here and see the Note below. Yes. Multiply line 14 by 10% (0.10). Enter the result here and see the Note below. |
The IRS early-release draft Form 8814 for 2026 (cover page “Caution: DRAFT—NOT FOR FILING”) prints the same $2,700, $13,500, $1,350 and $135 amounts on these lines.
Calculator: Form 8615 lines 1 to 5
The calculator follows Form 8615 lines 1 to 5 and line 14. It starts on tax year 2025, the latest year with a final form; tax year 2026 uses the IRS early-release draft (“DRAFT—NOT FOR FILING”). If the child’s taxable income (line 4) is left blank, it is estimated as unearned plus earned income minus the dependent standard deduction, which is our arithmetic using the Rev. Proc. amounts in the table above. It does not figure the parent’s tax: that takes lines 6 to 11 from the parent’s return.
The child’s figures
Assumes the child did not itemize and can be claimed as a dependent. Enter unearned income after any early-withdrawal penalty, as line 1 does.
Form 8615 line arithmetic, tax year 2025
Enter the child’s unearned income (0 or more) to see the lines.
The Form 1040 instructions allow a return to be rounded to whole dollars; the calculator keeps cents instead (this site’s convention), so a return rounded to whole dollars can differ by under a dollar per amount:
“You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar.”
| Line | Amount |
|---|---|
| 1. Unearned income | $8,000.00 |
| 2. Child did not itemize | $2,700.00 |
| 3. Line 1 minus line 2 | $5,300.00 |
| 4. Taxable income, estimated (dependent standard deduction $1,350.00) | $6,650.00 |
| 5. Smaller of line 3 or line 4 | $5,300.00 |
| 14. Line 4 minus line 5 | $1,350.00 |
| Line 5 times 24% (simplification) | $1,272.00 |
The $8,000 comes from the instructions’ Roger example, quoted next. Roger itemizes deductions in the instructions ($300 of directly connected itemized deductions); the worked example above assumes the standard deduction, so its lines 4 and 14 are not Roger’s figures.
“Example 1. Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 that are directly connected with his unearned income.”
For related pages see tax brackets 2026, the standard deduction and the net investment income tax.
Forms and drafts the IRS had posted
The final forms we used are the 2025 revisions. The IRS draft list had these 2026 products for Form 8615:
| Product | Title | Revision date | Posted date |
|---|---|---|---|
| Instruction 8615 | Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income | 2026 | 08/04/2026 |
| Form 8615 | Tax for Certain Children Who Have Unearned Income | 2026 | 06/30/2026 |
“Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.”
What this page does not cover
- The parent’s tax on lines 6 to 13, capital gain and qualified dividend worksheets, and children who file Form 2555.
- Itemizing children: the instructions’ line 2 rule is quoted above, but the calculator assumes the child did not itemize.
- State tax treatment.
Frequently asked questions
What is the kiddie tax?
The 2025 Instructions for Form 8615 say that for children under age 18 and certain older children, unearned income over $2,700 is taxed at the parent’s rate if the parent’s rate is higher than the child’s, and that Form 8615 is used to figure the child’s tax when the child’s unearned income is more than $2,700. The IRS early-release draft 2026 instructions (“DRAFT—NOT FOR FILING”) use the same $2,700.
What is the kiddie tax threshold for 2025 and 2026?
For tax year 2025, line 2 of the final Form 8615 is $2,700 when the child did not itemize, and Rev. Proc. 2024-40 gives $1,350 as the section 1(g)(4)(A)(ii)(I) amount. For tax year 2026, Rev. Proc. 2025-32 gives $1,350 and the IRS early-release draft Form 8615 (2026) prints $2,700 on line 2 (“DRAFT—NOT FOR FILING”, so the figure can change before the final form). The instructions say a child who itemizes enters the larger of $1,350 plus directly connected itemized deductions, or $2,700.
Which children does the kiddie tax cover?
The 2025 instructions say Form 8615 must be filed for any child who meets all five conditions: more than $2,700 of unearned income; required to file a tax return; at the end of 2025 either under age 18, age 18 without earned income of more than half of the child’s support, or a full-time student at least age 19 and under age 24 without earned income of more than half of the child’s support; at least one parent alive at the end of 2025; and no joint return filed for 2025. The term child includes a legally adopted child and a stepchild, and the rules apply whether or not the child is a dependent.
How is the child’s tax figured on Form 8615?
The instructions have a tentative tax at the parent’s rate, which is the difference between the tax on the parent’s taxable income figured with the child’s net unearned income (and any other child’s) and the tax figured without it. The child’s tax is the larger of the child’s share of that tentative tax plus the tax on the rest of the child’s taxable income at the child’s rate, or the tax on all of the child’s taxable income at the child’s rate (lines 14 to 18).
Can parents report a child’s income on their own return instead?
Form 8814 lets parents elect to report the child’s interest and dividends. The 2025 instructions list the child conditions, including gross income of less than $13,500 and only interest and dividends, and Rev. Proc. 2025-32 says a child’s gross income for 2026 must be more than $1,350 but less than $13,500. The instructions also say the rate may be higher: up to $135 more tax if the child had qualified dividends or capital gain distributions. The IRS early-release draft Form 8814 (2026) prints $2,700 on lines 4 and 5, $13,500 on line 4 and $1,350 on line 13 as well (“DRAFT—NOT FOR FILING”).
Do IRS documents disagree on the threshold?
Yes, one page does. The IRS About Form 8615 page (page last reviewed April 29, 2026) says the form is used to figure tax on unearned income over $2,100, while the 2025 Instructions for Form 8615 (dated October 22, 2025), the 2025 Form 8615 and Tax Topic 553 (page last reviewed September 24, 2026) all say $2,700. This site uses the form and instructions figure and does not use the $2,100 sentence.
Does the calculator figure the parent’s tax?
No. It follows Form 8615 lines 1 to 5 and 14 and shows how much of the child’s taxable income falls into the parent-rate calculation. Lines 6 to 11 need the parent’s return, so the calculator gives a tentative tax only if a flat percentage is entered, which is a simplification: the form takes the difference between two tax figures on the parent’s taxable income, which can cross brackets and use capital gain rates.
Related pages and calculators
Sources (checked November 2, 2026): IRS: Form 8615 (2025), PDF · IRS: 2025 Instructions for Form 8615, PDF · IRS: Form 8615 (2026) early-release draft, PDF · IRS: 2026 Instructions for Form 8615 early-release draft, PDF · IRS: Form 8814 (2025), PDF · IRS: 2025 Instructions for Form 8814, PDF · IRS: Tax Topic 553, Tax on a child’s investment and other unearned income · IRS: About Form 8615 · IRS: 2025 Instructions for Form 1040, rounding off to whole dollars · IRS: Draft tax forms, instructions and publications · IRS: Rev. Proc. 2025-32 (2026 inflation-adjusted items), PDF · IRS: Rev. Proc. 2024-40 (2025 inflation-adjusted items), PDF