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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (3887)	2/23/2010 9:23:26 PM
From: chowder	Read Replies (2) \| Respond to of 34328

>>> From a first job until full time employment would be a great teaching experience. <<< I started taking 20% of my kids money since birth! 20% of birthday money. 20% of Christmas money. 20% of allowance. 20% of every dollar that came their way. My parents were upset because I was taking 20% of the money they gave to their grandchildren. I told them I didn't care, I was going to continue. They slipped money behind my back. The Missus told me! :o) So, I even took 20% of that. When my Son got about 15 he was ticked off. He said, Grandma said that was my money. I said I'll make a deal. If you can tell me what Grandma gave you for Christmas last year you can have the money and I'll double it. He couldn't tell me. I told him, when you are old and gray, you'll remember Dad took 20% of your money every Christmas! When he turned 16 I made him get in the car and we canvased door to door to find him a job after school and weekends. Finally got him a job at Target and he worked every weekend during his high school years, and I took 20% of that! When he joined the Navy, I told him I was taking 20% of his pay there too and he said, I don't give a damn. I'm used to it now. (LOL) He's got a nice sized account as a result of it and paid cash for a car on top ( his money, not mine ). No regrets here! Nor on his side now that he's seen other's money woes.

To: Steve Felix who wrote (3887)	2/24/2010 9:44:45 PM
From: Elroy	Read Replies (1) \| Respond to of 34328

You don't have to worry about this rule until your child has investment income greater than a threshold amount, which is two times the amount allowed as a standard deduction for a dependent who has only investment income. For 2009, that amount is $950, so the kiddie tax begins to apply when your child has more than $1,900 in investment income. Your child can still owe regular income tax with less than $1,900 in income. This is merely the threshold amount of investment income for the special kiddie tax. So I can open an account for him with my name also on the account for controlling/investing purposes, and he wouldn't have to file taxes until the account earns more than $1,900 in a given year, correct? He's only 2, so he's not earning any other income for a long time. If I do the above I still get to declare him as a deduction on my taxes, right? That sounds like a pretty good idea. If I put $5k in for him this year, he can earn up to $1,900 tax free for many years to come.