Basic Federal Income Taxation: Taxable Income and Tax Computation: Taxation of Minor Children's Income

This lesson is best used after studying Federal Income Taxation: Taxable Income and Tax Computation, in class. The lesson includes problem sets to work through, allowing you to apply the Code and Regs. to a variety of situations involving the taxation of minor children's income under section 1(g).

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Identify who is subject to the rate adjustment rules of I.R.C. § 1(g) (known as the “kiddie tax”).
2. Provide examples of unearned income subject to the rate adjustment rules of I.R.C. § 1(g).
3. Make the computations required by I.R.C. § 1(g) when an individual subject to the section has unearned income.