In 2019, which of the following children would have income taxed at trust and estate rates?...
In 2019, which of the following children would have income taxed at trust and estate rates?
a. A 13-year-old child with salary income of $12,000
b. A nonstudent, 19-year-old child with net unearned income of $12,000
c. A 9-year-old child with salary income of $1,000
d. A 12-year-old child with net unearned income of $3,200
e. All of these choices are correct.
Homework Answers
The correct answer is
d. A 12-year-old child with net unearned income of $3,200
Workings
The concept of charging tax on income derived by children below the age of 18 is known as Kiddie tax. In this case any income earned by kids because of investments made by parents is chargeable to tax based on the applicable threshold limit.
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In 2019, which of the following children would have income taxed
at trust and estate rates?...
In 2018, which of the following children would have income taxed at trust and estate rates?...
In 2018, which of the following children would have income taxed at trust and estate rates? a. A 9-year-old child with salary income of $1,000 b. A 12-year-old child with net unearned income of $3,200 c. A 13-year-old child with salary income of $12,000 d. All of the above e. A nonstudent, 19-year-old child with net unearned income of $12,000
Exercise 3-21 (LO. 7) Simon, age 12, generates $4,900 interest income and no earned income for...
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Exercise 3-21 (LO. 7) Simon, age 12, generates $4,900 interest income and no earned income for 2019. He incurs no investment expenses. Click here to access the 2019 tax rate schedule and 2019 Estate and Trust Tax Rate Schedule. If required, round the tax liability to the nearest dollar. Net unearned income is $ 2,700 Simon's total tax is Feedback Check My Work To reduce the tax savings that result from shifting income from parents to children, the net unearned...
ork eBook Calculator Printem Problem 6-9 Uncanned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12 year old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. II Stan's parents elected to report Stan's income on his parents' retum, what would the tax on Stan's income be? 370 X Paedias Chow To prevent income shifting,...
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