Child's lower; dependent's higher; parent's lower. answer: Schedule A, Form 2106, Form 8615

Problem 6-7 Unearned Income of Minor Children and Certain Students (LO 6.4) 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? from transferring generally to in order to take The provision is designed to prevent 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 may elect to include the income by attaching and less than $ which is attached to tax return. Alternatively, To make this election, the child's unearned income must be more than $