• U.S.

TAXES: Baby Bashing At the IRS

1 minute read

Thanks to the U.S. Government, some children may soon be finding out what the letters IRS mean even before they learn their ABCs. Having processed most of the 1987 returns, the Internal Revenue Service says the 1986 tax-reform bill should have added many tots to the tax rolls and increased the amount that others have to pay. Under the new rules, a child cannot claim a personal exemption on his return if his parents list him as a dependent on their form. In addition, children under 14 who have unearned income greater than $500 must now pay at least part of their taxes in their parents’ usually higher bracket. For parents, the IRS message is unnerving: the Government will treat your children just the same as it treats you when it comes to tax delinquency.

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