Question

Sally Ann, age 14, has unearned income of $8,450. Her parents have decided to declare Sally Ann's income on their tax return using the Kiddie Tax. The additional amount of tax computed using Sally Ann's Form 8814 that will be reported on her parents' return is __________.

$220

$210

$110

$105

Answer 1

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If they choose to the income on form 8814, this form will calculate the tax due on the first $2200 (2009) of the child's unearned income. Any amount over $2200 will be added to the income reported on the parent's Form Loyo. and taxed there accordings. The child must only have income dess than $10,500 and must be below 19. The additional amount of tax computed using Sally Ann's is $2200 X 10% = $ 220 a A $2100 and taxed at year not mentioned in question, of its 2018, then the limit is $2100 X 10%. = $ 210