Marisa is 16 years old and a dependent of her parents. She earned $5,000 of income from wages working at Crave Ice Cream Shop and has $3,000 of interest income from corporate bonds. Which of the following statements are true? She is not subject to kiddie tax because she has earned income. She is subject to kiddie tax on both her earned and unearned income. Her unearned income over $2,200 is taxed at her parents’ tax rates. Her earned income over $2,200 is taxed at her parents' tax rates. Her earned income is taxed at her rates. All $3,000 of her investment income is subject to tax at her parents’ tax rates. Group of answer choices I only None of these options II only III and IV V only III and V
Marisa is 16 years old and a dependent of her parents. She earned $5,000 of income from wages working at Crave Ice Cream Shop and has $3,000 of interest income from corporate bonds. Which of the following statements are true? She is not subject to kiddie tax because she has earned income. She is subject to kiddie tax on both her earned and unearned income. Her unearned income over $2,200 is taxed at her parents’ tax rates. Her earned income over $2,200 is taxed at her parents' tax rates. Her earned income is taxed at her rates. All $3,000 of her investment income is subject to tax at her parents’ tax rates. Group of answer choices I only None of these options II only III and IV V only III and V
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 20P: Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the...
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Marisa is 16 years old and a dependent of her parents. She earned $5,000 of income from wages working at Crave Ice Cream Shop and has $3,000 of interest income from corporate bonds. Which of the following statements are true?
-
- She is not subject to kiddie tax because she has earned income.
- She is subject to kiddie tax on both her earned and unearned income.
- Her unearned income over $2,200 is taxed at her parents’ tax rates.
- Her earned income over $2,200 is taxed at her parents' tax rates.
- Her earned income is taxed at her rates.
- All $3,000 of her investment income is subject to tax at her parents’ tax rates.
Group of answer choices
I only
None of these options
II only
III and IV
V only
III and V
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