Warning to all young investors of the “kiddie tax”

I just recently filed my 2021 taxes. I had investments from 2020 and then sold them in 2021 assuming I could take the long term capital gain and pay no tax due to my low income.

Unfortunately I am a young college student and a law called the “kiddie tax” exists which taxes a dependent child’s unearned income over $2,200 at the parent rate.

I owed over $4,000 when I filed. I got taxed about 30% on my capital gain.