Question

A parent may elect to include a child's income in the parent's return if: a.The child's income is only from interest and dividend distributions. b.The child's gross income is more than $1,050 and less than $10,500. c.No estimated tax has been paid in the name of the child and the child is not subject to backup withholding. d.All of these choices must be met for a parent to elect to include a child's income in the parent's return.

Answer 1

Answer: d. All of these choices must be met for a parent to elect to include a child's income in the parent's return.

Explanation:

A parent is allowed to include their child's income in theirs if certain conditions are met. One of these conditions is that the income in question can only come from dividends and interest distributions.

Another requirement is that the income must be less than $10,500($11,000 in 2021) but also above $1,050. Yet another one is that no tax should have been paid in the name of the child and the child should be less than 19 or 24 if they are full time students.