Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 6, Problem 11MCQ
To determine
Concept Introduction: The income of a minor child is included in the income of the close relative and this concept of income tax is called clubbing of income (also called kiddie tax). Hence the tax on unearned income of the minor child is paid by the parent.
To choose:The tax rate applied to the unearned income of a minor.
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Students have asked these similar questions
which of the following is required for a taxpayer to be subject to the tax on unearned income of minors ( kiddie tax) in 2020?
a) must have no earned income
b) 21 years of age or younger
c) both parents must be living
d) net unearned income must exceed $2,200
e) all of the above are required
What is the purpose of the provision in the tax law that taxes unearned income of certain minor children at the trust and estate tax rates?
The provision is designed to prevent from transferring generally to in order to take advantage of the tax rate.
Which of the following is not true?
Taxpayers must file a federal income tax return if their gross income exceeds the standard deduction amount set for
their filing status
If Tony's wife died on January 1, 2020 and he remarried on December 31, 2020, he can only file either married filing
jointly or married filing separately with his new wife.
The 16th Amendment to the US Constitution legalized the direct taxation of individuals' income.
For US tax purposes, the tax rate on individuals' income is a flat rate
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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- For 2018, the Social Security portion of the FICA tax is imposed at a rate of (not including any additional tax for high-income earners): a.6.2 percent for the employee and 7.65 percent for the employer. b.6.2 percent for only the employer. c.6.2 percent for the employee and 6.2 percent for the employer. d.6.2 percent for only the employee. e.None of these choices are correct.arrow_forwardWhich of the following should be included in an individual taxpayer's federal gross income? Child support payments received in accordance with a pre-2019 divorce decree. No changes have been made to the agreement. Disaster relief payments. Jury duty pay. Welfare benefits.arrow_forward
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