Unearned income, also known as passive income, is derived from sources other than employment or business operations and can act as a financial safety net during times of job loss or financial crisis.

Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues ...

Earned income is the money you earn through work or services, while unearned income is the money you receive without actively working for it. Both are crucial for financial planning and ...

The kiddie tax is a set of tax rules designed to prevent parents from reducing their tax burden by shifting investment income to their children. It applies to children under the age of 18, or ...

Note: Under the SECURE Act, the changes made by the 2017 Tax Act with respect to the kiddie tax rules were repealed. The repeal of the 2017 kiddie tax changes is effective beginning in 2020. However, ...

A key to maximizing a family’s after-tax investment income is to navigate the Kiddie Tax. Don’t make gifts of investment property to children or grandchildren without knowing the rules. The Kiddie Tax ...

The IRS doesn’t care how old you are. If you have an income, it requires you to pay taxes, even if your first pimple hasn't appeared or you haven't learned to drive. So, while it’s exciting for kids ...

Taxable income is the portion of your income that the IRS considers subject to federal income tax. It includes both earned income, such as wages and self-employment earnings, and unearned income, such ...