Investopedia explains 'Income Shifting'
The easiest method of shifting income to a child is typically to transfer funds or investment assets to a savings account or investment account under your child's name. The income from this account will fall into a lower tax bracket, as the child in most cases will not be making an income that would be applicable to higher taxation. One issue to be aware of, for parents looking to defer income to a child, is the "kiddie tax."
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