Question

Which of the following individuals would NOT be subject to the kiddie tax assuming they have unearned income?

a) A 16-year-old with significant investment income
b) A 20-year-old college student with part-time job earnings
c) A 25-year-old with rental income
d) A 15-year-old with income from a summer job

Answer 1

The individual who would NOT be subject to the kiddie tax assuming they have unearned income is a 15-year-old with income from a summer job.

Step-by-step explanation:

The individual who would NOT be subject to the kiddie tax assuming they have unearned income is d) A 15-year-old with income from a summer job.

The kiddie tax is a tax rule in the United States that applies to children under the age of 19 and to full-time students under the age of 24. It taxes a child's unearned income, such as investment income, at the parents' tax rate.

In this case, a 15-year-old with income from a summer job would not be subject to the kiddie tax as their income is earned income and not unearned income like the other options.