Assuming the kiddie tax applies, what amount of a child's income is subject to the kiddie tax?

Question

Quizplus · Accepted Answer

The kiddie tax applies to a child's unearned income (such as dividends, interest, and capital gains) over a certain threshold (currently $2,200 for 2021). Only the net unearned income (i.e. the amount over the threshold) is subject to the kiddie tax. Earned income, such as wages or salary, is not subject to the kiddie tax. Therefore, the correct answer is C - the net unearned income.

Assuming the Kiddie Tax Applies, What Amount of a Child's