MY REG

Question 1

Internal Revenue Code

Answer 1

IRC - basic foundation of federal tax laws

Question 2

Individual Filing Requirements

Answer 2

Must file if their income is greater than the sum of their personal exemption plus their standard deduction, or:

1. have net self-employment earnings of $400 or more
2. are individuals claimed as dependents with $1000 or more gross income
3. are subject to the Kiddie Tax

Question 3

Kiddie Tax

Answer 3

“Wealthy” invest in kid’s name to avoid tax on investment income.

Subject to a tax liability for the larger of 2 amounts:

1. The tax that would be owed based on filing a return including the child’s income
2. Tax owed based on a return including only the child’s earned income plus the allocable parental tax