Ricardo owns a small unincorporated business. His $15-$year$-$old daughter Jane works in the business on a part$-$time basis and was paid wages of $$3,000$ during the current year. Who is taxed on

the child's eamings: Jane or her father? Explain.

A$.$ Since Jane has earned income and her father is her employer, both Jane and father are taxed on $$1,500$ each. This is true since Jane is under age $18$ and she is employed by a family

member.

B$.$ Neither Jane nor her father are taxed on the $$3,000,$ since Jane is under age $18$ and this is eamed income from a related party.

C$.$ Jane is taxed even if her father is the employer. Since Jane has earned income, the $$3,000$ of wages are not subject to the kiddie tax rules and are not included on the parent's return. This is

true even though Jane is under age $18.$

D$.$ Since Jane is under age $18$ and has eamed income, the $$3,000$ of wages are subject to the kiddie tax rules and are included on the parent's return.