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Assume Alans parents make gifts of $10,000 to him every year starting at age one, Alans parents are in the 35 percent income tax bracket,

Assume Alans parents make gifts of $10,000 to him every year starting at age one, Alans parents are in the 35 percent income tax bracket, and Alan is now 15 years old and has $11,700 of interest income for 2020.

a. Calculate the tax on Alans interest income.

b. Explain why the kiddie tax rules are in the law.

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