what is the tax treatment of unearned income for a child 
according to the irs there are two possibilities that affect the reporting of a child s unearned income for 2023 any unearned income above 2 500 2 600 for 2024 may be subject to an unearned income tax this is known as the kiddie tax alternatively interest and dividend income of less than 12 500 for 2023 13 000 for 2024 may be included on the parent s return rather than that of the child 131415the bottom lineunearned income isn t a term with which most people are familiar you may know it as passive income or money that you acquire without providing a service put simply you make this money without actually working for it sources of unearned income may include interest income from interest paying accounts dividends and rent from tenants if you have an investment property just because it means it is earned passively doesn t mean you don t have to report it on your tax return in fact the opposite is true be sure to check with the irs or the issuer of the unearned income or you can consult a tax professional if you re unsure of what your unearned means to your tax liability 