...Rachael E. Rubenstein; Thomas F. Madison; Kent W. Royalty ABSTRACT One of the changes contained in the Tax Reform Act of 1986 is the tax on unearned income of minor children, also known as the “kiddie tax.” We review this tax, its legislative history, the amendments and interpretations that have...

...-time undergraduate and graduate students. Although Congress generally seeks to promote innovation, royalty income from student-created inventions is penalized because it is characterized as unearned income that is subject to the kiddie tax, a form of alternative minimum tax. The objective...