In connection with the application of the kiddie tax,

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In connection with the application of the kiddie tax, comment on the following. A. The child has only earned income . B. The child has a modest amount of unearned income. C. The child is age 20, is not a student, and is not disabled. D. The child is married E. Effect of the parental election. F. The result when the parental election is made and the married parents file separate returns.
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                             Internal Service Revenue [IRS] of USA tries to prevent tax evasion by certain taxpayers by transfering their investments to their children.  So Kiddie tax is charged on unearned income of chiledren through interest and dividentds.

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