Question

The kiddie tax applies if the child is a full-time student under age 24.

1) True
2) False

Answer 1

The kiddie tax applies if the child is a full-time student under age 24.

Step-by-step explanation:

The statement is true.

The kiddie tax applies if the child is a full-time student under age 24. The kiddie tax is a tax law that applies to the unearned income of children under a certain age. Under this law, unearned income over a specific threshold is subject to taxation at the parents' tax rate instead of the child's rate.

For example, if a child under age 24 is a full-time student and has unearned income (such as investment income) that exceeds the specified threshold, that income may be subject to the kiddie tax.