Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

Name: Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.
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Question

Quizplus · Accepted Answer

This is true. Unearned income of a child under the age of 18 may be subject to the "kiddie tax," which taxes the child's unearned income at the parents' tax rate. Earned income, such as wages from a job, is taxed at the child's own tax rate.

Unearned Income of a 16-Year-Old Child May Be Taxed at His