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Eduardo, age 11, is a dependent of his parents. His only source of income in 2020 is $7,500 of interest income on bonds given him
Eduardo, age 11, is a dependent of his parents. His only source of income in 2020 is $7,500 of interest income on bonds given him by his grandparents, resulting in taxable income of $6,400. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and other taxable income taxable at his own rate. Eduardo's taxable income will be divided as follows: A) net unearned income -$6,400 and other taxable income -$0. B) net unearned income -$5,300 and other taxable income -$1,100. C) net unearned income -$0 and other taxable income -$6,400. D) net unearned income -$7,500 and other taxable income -$1,100
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