So do your children have to file a tax return if they are your dependents and have investment income? The answer can be yes more often than you think. Worse yet, they might be paying tax on it at your income tax rate! See this IRS tip that explains things a little more and what is required:

http://content.govdelivery.com/accounts/USIRS/bulletins/abb0ae?reqfrom=share

Now, wasn’t it a great idea back then to gift all this stuff to your kids and have them pay the tax on this stuff at their rates? Well if you went a little overboard, maybe not! They might still be paying at your rates, plus you might have to file another tax return to boot.

For financial, accounting and tax musings,