United States · Federal tax · Kiddie tax
2027 kiddie tax threshold.
The 2027 kiddie tax amounts, how a child's unearned income is split between the child's rate and the parent's rate, and a quick check for a child you know.
Short answer: For tax year 2027 the kiddie tax amount is $1,400, the same figure as the dependent standard deduction floor. A child's first $1,400 of unearned income is sheltered by the standard deduction, the next $1,400 is taxed at the child's own rates, and net unearned income above $2,800 is taxed at the parent's rate. A parent may elect to report a child's income if the child's gross income is more than $1,400 and less than $14,000.
Check a child's 2027 income
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The 2027 kiddie tax amounts
| Item (tax year 2027) | Amount | Basis |
|---|---|---|
| Kiddie tax amount, section 1(g)(4)(A)(ii)(I) | $1,400 | Rev. Proc. 2026-35, section 3.02 |
| Dependent standard deduction floor | $1,400 | Section 3.15(2): the greater of $1,400 or $500 plus earned income |
| Unearned income before the parent's rate applies | $2,800 | Two times $1,400, derived (the Form 8615 line 5 reduction plus the standard deduction) |
| Parental election, gross income more than | $1,400 | Section 3.02 |
| Parental election, gross income less than | $14,000 | Section 3.02, ten times the amount |
The kiddie tax stops a parent from shifting investment income to a child to use the child's lower rates. It applies to the child's unearned income above the amounts above, and the child files Form 8615 with their return.
Who the kiddie tax applies to
Form 8615 must be filed for a child whose unearned income is over the threshold, who must file a return, and who was under age 18 at the end of the year, or was 18 and had earned income of no more than half of their support, or was a full-time student aged 19 to 23 with earned income of no more than half of their support. At least one parent must be alive at year end, and the child cannot file a joint return. These conditions are from the IRS Form 8615 instructions (the 2025 edition was the current one when read).
What changed from 2026
The kiddie tax amount rises to $1,400 for 2027 under Revenue Procedure 2026-35, and the dependent standard deduction floor is the same $1,400. The IRS Form 8615 instructions for tax year 2025 use a $2,700 test (two times $1,350). Doubling the 2027 figure gives $2,800, so a child's unearned income must exceed $2,800 before Form 8615 is needed in 2027. The $2,800 is derived from the $1,400 amount, not quoted as a separate IRS figure.
Worked example
A 12-year-old has $5,000 of dividend income and no earned income in 2027. The standard deduction is $1,400, so taxable income is $3,600. Net unearned income is $5,000 minus $2,800, which is $2,200, and that is taxed at the parent's rate. The other $1,400 of taxable income is taxed at the child's rates. Form 8615 applies because unearned income is over $2,800.
If the child instead had $3,000 of dividends and $1,000 of wages, the standard deduction is $1,500 ($500 plus $1,000 earned), taxable income is $2,500, and net unearned income is $200. Only that $200 moves to the parent's rate.
Common mix-ups
- $2,800 is two amounts, not one. The first $1,400 is covered by the standard deduction and the next $1,400 is taxed at the child's rate, so the parent's rate starts above $2,800 of unearned income.
- Only unearned income counts. A teenager's wages do not trigger the kiddie tax, though they raise the standard deduction.
- It is not only for young children. The age tests reach 18 and, for full-time students, up to 23 under the earned income and support condition.
- The parent's election is a different path. It lets a parent report the child's income on the parent's own return instead of the child filing, within the $1,400 to $14,000 range.
- The year matters. $2,700 is the figure on the 2025 form instructions, and $1,400 is the 2027 amount. Use the figure for the tax year of the return.
Method
The checker sets the standard deduction to the greater of $1,400 or $500 plus earned income, capped at the $16,600 single standard deduction. Taxable income is unearned plus earned income minus that deduction, floored at zero. Net unearned income is unearned income minus $2,800, floored at zero and limited to taxable income. The part of taxable income at the child's own rates is what remains. This follows the rule in section 1(g) as summarized in the revenue procedure and the Form 8615 instructions. It ignores itemized deductions directly connected to the income, which would replace the $1,400 deduction if larger. Read from the sources on November 9, 2026.
What this does not cover
- The tax itself: the parent's marginal rate and the child's brackets are on Form 8615 and the 2027 tax brackets.
- Itemized deductions directly connected to the child's unearned income, trusts and capital gain tax rates.
- The 2026 amounts and the filing threshold for a child's own return.
- Special rules for children of a parent who files Form 2555 or has a different tax year.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Revenue Procedure 2026-35: 2027 inflation adjustments (sections 3.02, 3.04 and 3.15) (retrieved November 9, 2026)
- IRS: Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income (retrieved November 9, 2026)
Frequently asked questions
What is the kiddie tax threshold for 2027?
The kiddie tax amount is $1,400 for 2027. A child's unearned income above $2,800 (two times $1,400) can be taxed at the parent's rate.
Is the 2027 kiddie tax threshold higher than 2026?
Yes, it is $1,400 for 2027. The IRS Form 8615 instructions for tax year 2025 use a $2,700 test, which is two times $1,350.
Who has to file Form 8615?
A child with more than the threshold of unearned income who must file a return and meets the age and support tests, with a living parent and no joint return.
How old does the child have to be?
Under 18, or 18 with earned income not above half of support, or a full-time student aged 19 to 23 with earned income not above half of support.
What is the parent election to report a child's income?
A parent may include the child's income on their own return when the child's gross income is more than $1,400 and less than $14,000 in 2027.
Do wages count toward the kiddie tax?
No. Only unearned income counts, but earned income raises the standard deduction to $500 plus the earned income, if more than $1,400.
Where are the 2027 amounts published?
IRS Revenue Procedure 2026-35, sections 3.02 and 3.15, linked in the sources.
Not legal or tax advice
This page is general information from an unofficial guide, not tax advice. The kiddie tax has age, support and income conditions that vary by child. Use Form 8615 and its instructions or a tax professional before you file. Nothing you type is sent anywhere. It runs in your browser.