🎯Kiddie Tax: 4 MCQs

Responses

1. 

   Kaleb Pierce 11 April 2025

   Hello, in question 2, shouldn’t the answer be worded differently? I could be wrong. Shouldn’t it read “If the parents of the child are deceased, the kiddie tax is applicable.”

   I could be wrong. Thank you!

   1. 

      Maroun, CPA 14 April 2025

      Hello Kaleb,

      Under current U.S. tax rules (IRC §1(g)), the kiddie tax applies to certain children who have unearned income—provided at least one parent is alive. If both parents are deceased, the child has no living parent to whom the unearned income might otherwise be “attached” for kiddie tax purposes.
      This is why the correct answer choice reads, “If the parents of the child are deceased, the kiddie tax is not applicable,” rather than indicating it is applicable.
      Thus, none of the statements is correct except for the statement included in answer choice “C”.

      I hope this helps!

2. 

   NICOLETA Soroiu 13 July 2026

   No kiddie tax when parents are deceased.

   1. 

      Maroun, CPA 15 July 2026

      Hello Nicoleta,

      Yes, that is correct.

      For the kiddie tax to apply, at least one of the child’s parents must be alive at the end of the tax year. If both parents are deceased, the kiddie tax rules do not apply. The IRS Form 8615 instructions state that the rules apply only if at least one parent was alive at year-end.

      That is why choice C is the correct answer.

      Hope this helps!