Filing Requirements - Dependents Unearned Income

Question 1

Does a dependent have to file a tax return if they are claimed as a dependent?

Answer 1

Sometimes

Question 2

What is the standard deduction for a dependent with unearned income?

Answer 2

Greater of $1,100 or earned income + $350

Question 3

NUI of a dependent under 19 or under 24 is taxed a what rate?

Answer 3

The parents marginal tax rate

Question 4

How to calculate net unearned income?

Answer 4

Unearned income - $1,100 clause - Greater of ($1,100 standard deduction/itemized deductions) or allowable deductions related to the producted of unearned income

Question 5

What income is included in earned income?

Answer 5

Salaries
Wages
Tips

Question 6

What income is included in unearned income?

Answer 6

Interest, dividends, capital gains, trust distributions, debt cancellation, pension, social security, royalties, taxable scholarship.

Question 7

When doesn’t the kiddie tax apply?

Answer 7

If the dependent under 19 or under 24 student, has earned income that exceeds 1/2 of the dependents support.

Question 8

What is the tax of a dependent?

Answer 8

The greater of the result of 2 calculations:

Refer to Gleim knowledge transfer outline for specific calculations.