Practical Perspectives: Key financial issues for you and your family – Anticipating the tax impact of a child’s investment income

Description

Abstract: In this issue’s “Practical Perspectives,” “Tom and Erin” want to show their daughter how to invest and understand the results. Before they get too far, however, they visit their tax advisor to clarify what impact her investments might have on their tax bill. The advisor explains the various ramifications that a child’s interest, dividends and other unearned income may have on the parents’ taxes.