Under the Current Law 2015, There Is "Kiddie Tax" for Children

question 26

Multiple Choice

Under the current law 2015, there is "kiddie tax" for children. Which of the following statements isare true with respect to this controversial tax?

• A) It only applies to children under the age of 15
• B) It only applies to children who have net investment income greater than $2,100
• C) It is only levied on a child's earned income
• D) It could subject the child to pay taxes at the parent's highest marginal tax rate
• E) B and D

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Definitions:

AFL

refers to the American Federation of Labor, a national federation of labor unions in the United States, founded in 1886, focusing on skilled workers.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until its merger with the AFL in 1955.

Operation Dixie

A campaign launched by the Congress of Industrial Organizations in the 1940s aimed at unionizing industrial workers across the Southern United States, facing considerable resistance.

CIO

Congress of Industrial Organizations, an federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until 1955.