Children who have investment income greater than $2,600 may be subject to tax. The next unearned income is taxed under the same rates and brackets as trusts and estates. This tax has been expanded in a very complex manner to potentially apply children under age 24 as of year-end. This extended version of the kiddie tax targets two groups who ave attained age 18: 1) those who reach their 18th birthday during the year, and 2) those in full-time student status for at least five months of the year who attain their 19th through 23rd birthday during the tax year. There is a further test for those in the age 18-23 groups. The kiddie tax only applies if the earned income of the child (wages and self-employment income) does not exceed one-half of the child’s support for the tax year. In calculating support, amounts covered by scholarships are not taken into account. The tax does not apply to a child who is married and files a joint return for the tax year.