3min chapter

Bogleheads® Live cover image

Robert Farrington on saving and investing for college

Bogleheads® Live

CHAPTER

The Kitty Tax and the Potential for Financial Aid

The kitty tax applies to unearned income of a dependent child. This means if you've got a UGMA or UGMA account, that kitty tax would likely apply. It significantly impacts the FAFSA and the expected family contribution for financial aid.

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