What is the purpose of the provision in the tax law that taxes unearned income of...

   

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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. Unearned Income of Minor Children and Certain Students (LO 6.4) Explain the two different ways that the tax on unearned income of minor children, or "kiddie tax," can be reported. The kiddie tax may be computed on which is attached to tax return. Alternatively, may elect to include the income by attaching . To make this election, the child's unearned income must be more than $ and less than $ 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. Unearned Income of Minor Children and Certain Students (LO 6.4) Explain the two different ways that the tax on unearned income of minor children, or "kiddie tax," can be reported. The kiddie tax may be computed on which is attached to tax return. Alternatively, may elect to include the income by attaching . To make this election, the child's unearned income must be more than $ and less than $