When the Kiddie Tax Applies, the Child Need Not File

question 72

True/False

When the kiddie tax applies, the child need not file an income tax return because the child's income will be reported on the parents' return.

---

Definitions:

Journal Entry

A record in the accounting ledger that represents a transaction and its effect on various accounts, used for tracking and organizing financial data.

Accrual

Accrual is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction actually takes place.

Adjusting Journal Entry

An accounting entry made in the general ledger at the end of an accounting period to record any unrecognized income or expenses for the period.

Accrual

The recognition of revenue or expenses that have been earned or incurred but not yet recorded or paid, following the accrual basis of accounting.