The informal name of a provision in the tax code that causes a child's unearned income over $1,900 to be assessed at the parents' tax rate. Unearned income includes dividends, capital gains, and interest. The "kiddie tax" used to apply only to children up to the age of 18 (and earlier only up to the age of 14), but since January 1, 2008, it has applied to young people up to the age of 24 if they are full-time students (unless they support themselves). The kiddie tax affects strategies for gifting company stock (see a related FAQ).