When the Kiddie Tax Applies, the Child Need Not File

question 86

True/False

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

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Definitions:

Statement Of Cash Flows

An accounting document illustrating the impact of adjustments in balance sheet figures and profits on cash and cash equivalents, separated into operating, investing, and financing sectors.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash flow from operating activities.

Factory Equipment

This refers to the machinery and tools used in the process of manufacturing goods within a factory setting.

Treasury Stock

Represents shares that were once part of the outstanding shares and have been bought back by the corporation.