The tax rate that a child pays on $800 of interest income depends on their overall income and tax bracket. As of 2021, a child with $800 of interest income would fall into the lowest tax bracket of 10%.
The tax rate that a child pays on $800 of interest income depends on their overall income and tax bracket. In the United States, individuals are subject to tax rates based on their filing status and income level. For example, as of 2021, a child with $800 of interest income would fall into the lowest tax bracket of 10%. This means they would owe $80 in taxes on their interest income.