Tests of pooling based on unearned income
instead of earnings mitigate but do not completely avoid these problems.
The kiddie tax complication arises because scholarships included in gross income are classified as "unearned income
," along with other unearned income
items the student may have, such as interest, dividends, and capital gains.
The kiddie tax will apply when Susie is less than 18 years old and has net unearned income
(i.e., her unearned income
exceeds two times the $1,050 standard deduction).
In 2014, for example, a youngster who has no unearned income
can have up to $6,200 of earnings (the standard deduction amount) and owe no income tax.
They see Royal Families, members of Government and Parliament, company directors, property speculators etc awarding themselves salary increases far in excess of their own gross annual income, while at the same time people like Sir Alec Douglas Home with their inherited landed estates and considerable unearned income
have the temerity to accuse the workers of being selfish and greedy.
Nothing is free, Mr Latimer, it is unearned income
that has to be declared - if not taxed, it will come off benefits.
In addition, if a taxpayer's adjusted gross income exceeds certain limits ($250,000 for joint filers or surviving spouses, $125,000 for a married individual filing separately, $200,000 for all others), gains and unearned income
(including dividends) will be subject to the new 3.8% unearned income
Medicare contribution tax.
The 3.8 percent tax on unearned income
will become effective for tax years beginning in 2013 and will affect taxpayers with adjusted gross income (AGI) of more than $200,000 for single filers or $250,000 for married couples filing jointly.
THE Government is planning to tax "unearned income
", it emerged yesterday.
This outpouring of angst at the reduction of unearned income
must be put alongside real world events: the closure of Corus with the loss of 1,700 jobs, the 1,160 civilian staff at Durham Police now on a 90-day redundancy notice, a tightening of disability allowance regulations, a reduction in the education and NHS budgets, a two-year pay freeze on those troops earning over pounds 20,000 who are risking their lives in Afghanistan and so on.
Those with a high level of unearned income
New Hampshire has never taxed earned income (wages), but in 1923, it started taxing unearned income
with the enactment of the interest and dividends tax.
Kirk reported unearned income
between $143,227 and $385,108.
Arvest closed 2008 with $7.7 billion in total loans and leases, net of unearned income
, up 12.7 percent from 2007, according to call reports filed with the Federal Financial Institutions Examination Council.
The shift in stance followed criticism the original scheme would allow wealthy people living off "unearned income
" to escape paying for local services.