Kiddie Tax

Income Shifting
Income shifting is a tax strategy that involves transferring gross income from one taxpayer to another, typically to a taxpayer in a lower tax bracket, in order to reduce the overall tax liability of a group or family.
Kiddie Tax
Tax liability for children under age 14 on net unearned income (e.g., interest and dividend income) over $1,900 in 2010 (subject to indexing) is taxed at their custodial parents' highest marginal tax rate.
Minor
A 'minor' refers to an individual who is under the age of majority, which is specified by law. This age can range between 18 to 21 years, depending on the jurisdiction. Certain contracts entered into by minors are voidable at the discretion of the minor.

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