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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?
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.
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What types of income are considered unearned income?
What types of income are considered unearned income?
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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.
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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.
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How is unearned income taxed compared to earned income?
How is unearned income taxed compared to earned income?
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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?
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Which of the following is an example of unearned income?
Which of the following is an example of unearned income?
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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.
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When can dependents be required to file a tax return?
When can dependents be required to file a tax return?
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What is considered earned income according to the IRS?
What is considered earned income according to the IRS?
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True or false: Dependents are always required to file a tax return.
True or false: Dependents are always required to file a tax return.
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Are a child's earnings included in their parent's gross income?
Are a child's earnings included in their parent's gross income?
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What publication contains more information about tax rules for children and dependents?
What publication contains more information about tax rules for children and dependents?
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True or false: Naturalization is the only way to obtain US citizenship.
True or false: Naturalization is the only way to obtain US citizenship.
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Does earned income only apply to traditional jobs?
Does earned income only apply to traditional jobs?
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What taxes are earned income subject to?
What taxes are earned income subject to?
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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?
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What is the definition of earned income?
What is the definition of earned income?
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What is an example of unearned income?
What is an example of unearned income?
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Are earned income and unearned income subject to the same tax rates?
Are earned income and unearned income subject to the same tax rates?
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Can unearned income be subject to state and local taxes?
Can unearned income be subject to state and local taxes?
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What is an example of earned income?
What is an example of earned income?
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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.
