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TABLE 5 - Section 1(j)(2)(E) – Estates and Trusts

.02 Unearned Income of Minor Children Subject to the "Kiddie Tax". 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.

Over $105,700 but not over $201,775

$17,966 plus 24% of the excess over $105,700

Over $201,775 but not over $256,225

$41,024 plus 32% of the excess over $201,775

Over $256,225 but not over $384,350

$58,448 plus 35% of the excess over $256,225

Over $384,350

$103,291.75 plus 37% of the excess over $384,350 If Taxable Income Is: The Tax Is:

Not over $3,300

10% of the taxable income

Over $3,300 but not over $11,700

$330 plus 24% of the excess over $3,300

Over $11,700 but not over $16,000

$2,346 plus 35% of the excess over $11,700

Over $16,000

$3,851 plus 37% of the excess over $16,000