Kiddie tax. Arnie is seven years old. His parents are in the 37% tax bracket. Arnie's only income is $9,200 of interest from corporate bonds he owns. What portion of Arnie's income is taxed at a rate of 10% and what portion at a rate of 37%? 10% rate: $1,100; 37% rate: $8,100 10% rate: $8,100; 37% rate: $0 10% rate: $0; 37% rate: $8,100 10% rate: $1,100; 37% rate: $7,000 10% rate: $2,200; 37% rate: $7,000