The income of a minor child is included in the income of the close relative and this concept of income tax is called clubbing of income (also called kiddie tax). Hence the tax on unearned income of the minor child is paid by the parent. To choose: The condition not required to subject a taxpayer to tax on unearned income of minors.

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Chapter 6, Problem 10MCQ

To determine

Concept Introduction:

The income of a minor child is included in the income of the close relative and this concept of income tax is called clubbing of income (also called kiddie tax). Hence the tax on unearned income of the minor child is paid by the parent.

To choose:The condition not required to subject a taxpayer to tax on unearned income of minors.

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