The "Kiddie Tax" taxes a child's unearned income in excess of a certain threshold at the parents' rate. Unearned income is income from investments, such as interest or dividends. For this year’s threshold, see “Annual Updated Tax Numbers” under Resources on our website. A child that is considered a full-time student, under the age of 24 at the end of the tax year is potentially subject to the Kiddie Tax. A dependent child, under the age of 24, who has unearned income in excess of $2,000 and whose earned income does not exceed one-half of their support, would be subject to the Kiddie Tax.