Podcast
Questions and Answers
Under what conditions can parents elect to include a child's income on their own tax return?
Under what conditions can parents elect to include a child's income on their own tax return?
- If the child is under 18 years old
- If the child's income is over $10,000 per year
- If the child is a full-time student under 25 years old
- If the child's only income is from interest and dividends (correct)
True or false: If a child has any income, their parent is always liable for paying taxes on that income.
True or false: If a child has any income, their parent is always liable for paying taxes on that income.
False (B)
True or false: If a child earns income, the parent is always liable for the tax if the child doesn't pay it.
True or false: If a child earns income, the parent is always liable for the tax if the child doesn't pay it.
False (B)
True or false: If a child's only income is from interest and dividends, the parents are not liable for the tax if the child fails to pay it.
True or false: If a child's only income is from interest and dividends, the parents are not liable for the tax if the child fails to pay it.
What types of income are considered unearned income?
What types of income are considered unearned income?
True or false: Parents can include their child's income on their own tax return if the child is a part-time student over the age of 24.
True or false: Parents can include their child's income on their own tax return if the child is a part-time student over the age of 24.
True or false: A child is always responsible for filing their own tax return and paying any tax due.
True or false: A child is always responsible for filing their own tax return and paying any tax due.
How is unearned income taxed compared to earned income?
How is unearned income taxed compared to earned income?
Who is liable for a child's income tax if the child doesn't pay it?
Who is liable for a child's income tax if the child doesn't pay it?
Which of the following is an example of unearned income?
Which of the following is an example of unearned income?
True or false: Children who only earn interest and dividends are always exempt from filing their own tax return.
True or false: Children who only earn interest and dividends are always exempt from filing their own tax return.
When can dependents be required to file a tax return?
When can dependents be required to file a tax return?
What is considered earned income according to the IRS?
What is considered earned income according to the IRS?
True or false: Dependents are always required to file a tax return.
True or false: Dependents are always required to file a tax return.
Are a child's earnings included in their parent's gross income?
Are a child's earnings included in their parent's gross income?
What publication contains more information about tax rules for children and dependents?
What publication contains more information about tax rules for children and dependents?
True or false: Naturalization is the only way to obtain US citizenship.
True or false: Naturalization is the only way to obtain US citizenship.
Does earned income only apply to traditional jobs?
Does earned income only apply to traditional jobs?
What taxes are earned income subject to?
What taxes are earned income subject to?
What tax benefit is available to low- and moderate-income workers with children?
What tax benefit is available to low- and moderate-income workers with children?
What is the definition of earned income?
What is the definition of earned income?
What is an example of unearned income?
What is an example of unearned income?
Are earned income and unearned income subject to the same tax rates?
Are earned income and unearned income subject to the same tax rates?
Can unearned income be subject to state and local taxes?
Can unearned income be subject to state and local taxes?
What is an example of earned income?
What is an example of earned income?
Study Notes
- US citizenship can be obtained by birth or naturalization
- Dependents may need to file a tax return based on certain conditions
- Parents or guardians may need to file a tax return for a dependent child
- A child's earnings are included in their own gross income, not their parent's
- If a child doesn't pay tax on their income, the parent is liable
- Parents can elect to include a child's income on their own tax return under certain conditions
- This is applicable if the child's only income is interest and dividends
- The child must be under 19 or a full-time student under 24
- The election exempts the child from filing their own tax return
- More information can be found in Pub. 929, Tax Rules for Children and Dependents.
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Description
Test your knowledge on tax rules for children and dependents with this informative quiz! From understanding when a child's earnings are included in their own gross income to knowing when parents can elect to include a child's income on their own tax return, this quiz covers it all. Brush up on your tax knowledge and learn more about this topic by diving into this quiz today.
